'Oil Envoy' Kang Hoon-sik Secures 270 Million Barrels from Middle East and Central Asia... Reducing Dependence on Hormuz

Kang Visits Four Countries: Kazakhstan, Oman, Saudi Arabia, and Qatar

Major Successes in Saudi Arabia, Oman, and Kazakhstan

"Secured 2.1 Million Tons of Naphtha"

From Bypass Pipelines to Offshore Storage Facilities

Expanded Mea

The government announced that, in response to concerns about energy supply instability stemming from the prolonged Middle East war, it has secured an additional 273 million barrels of crude oil and up to 2.1 million tons of naphtha by the end of the year. It also launched discussions on establishing bypass pipelines and oil storage facilities outside the Strait of Hormuz, in order to fundamentally reduce the risk of a blockade in the region.

Yonhap News Agency

Kang Hoon-sik, Presidential Chief of Staff, who returned after visiting Kazakhstan, Oman, Saudi Arabia, and Qatar as a Special Envoy for Strategic Economic Cooperation on behalf of President Lee Jae-myung, stated during a briefing at the Blue House on April 15, "We have finalized the import of 273 million barrels of crude oil by the end of this year and secured up to 2.1 million tons of naphtha." He explained, "The crude oil and naphtha secured this time will be sourced from alternative supply lines not affected by a blockade of the Strait of Hormuz, which will directly and substantially contribute to stabilizing domestic supply and demand."

Kang further noted, "We exchanged in-depth views with oil-producing countries such as Saudi Arabia and Oman on various cooperative measures, including the construction of bypass pipelines and oil storage facilities outside the Strait of Hormuz to fundamentally address risks posed by a potential blockade." He added, "Middle Eastern oil producers have consistently expressed interest in expanding international joint oil stockpiling projects utilizing Korea's oil storage facilities."

The volume of crude oil and naphtha secured on this occasion corresponds to over three months' worth of crude oil and about one month's worth of naphtha imports under normal economic conditions without emergency measures. As of last year, Korea relied on the Strait of Hormuz for 61% of its crude oil and 54% of its naphtha imports. The Blue House judged that waiting for Middle East stability was not an option and dispatched Kang as a Special Presidential Envoy for Strategic Economic Cooperation.

By country, Korea secured 18 million barrels of crude oil from Kazakhstan, an oil producer with export routes unrelated to the Strait of Hormuz. The Blue House also established a new high-level direct communication channel as a result of the talks. In Oman, Korea requested safe passage for 26 Korean-flagged vessels and received a promise of around 5 million barrels of crude oil by year-end. With the addition of new naphtha volumes to the existing 400,000 tons, a total of about 2 million tons will be secured by year-end, according to Kang. He emphasized, "Since Oman is adjacent to the Indian Ocean and outside the direct impact zone of a Hormuz blockade, this achievement is particularly significant in terms of securing alternative import sources."

In Saudi Arabia, Korea received a commitment to ship 50 million barrels of crude oil through alternative Red Sea ports between April and May, and to be allocated a total of 200 million barrels from June through the end of the year. Saudi Arabia is a key supplier, providing 300 million barrels annually, or one-third of Korea’s total crude oil imports. Kang stated, "We have secured volumes this year from Saudi Arabia equivalent to about 90% of last year's imports, which account for more than one-third of Korea’s crude oil usage." He added, "For naphtha as well, we have agreed to receive as much as possible, including the annual import volume of 500,000 tons from last year."

Qatar was not originally on the itinerary, but an emergency visit was arranged after a ceasefire was reported locally in the early hours of April 8. Kang relayed that Qatar's representatives said, "Korea is our top priority" and reaffirmed their commitment to the existing LNG contract. A working group will be set up next week to expand cooperation on investment across industries, including artificial intelligence (AI). However, Kang noted that the resumption of LNG supply from Qatar still depends on the reopening of the Strait of Hormuz.

Yonhap News Agency

Kang drew a clear line against interpreting these achievements as linking crude oil procurement with defense industry exports. He said, "The price is being discussed based on market prices," and emphasized, "Even with sufficient funds, it is currently difficult to secure crude oil and naphtha." He added, "While companies sometimes make contact, this is the first time a government delegation has been dispatched with such dedication," highlighting that the government's direct and proactive approach and long-term trust-building were key factors in securing these supply commitments.

Kang also stated, "As the supplementary budget for the ongoing war includes support for increased naphtha import costs and expansion of domestic oil storage facilities, if expanded joint stockpiling with oil-producing countries is realized, supply stability can be further enhanced even in emergencies." He concluded, "We will carefully monitor and support the implementation so that the outcomes secured through this visit lead to tangible results."

This content was produced with the assistance of AI translation services.