Aminex signs vast PSC off east North Korea

By OGJ editors
HOUSTON, May 27 -- Aminex PLC said its Korex Ltd. affiliate signed a production-sharing contract with state Korea Oil Exploration Co. for exploration rights in the Korea East Sea.

The agreement, which replaces an earlier PSC, applies to a 12.5 million acre block off North Korea’s east coast. The PSC term is 10 years in four periods, three of 2 years each and one of 4 years.

The first period commitment is to complete work on existing data and shoot new marine 2D seismic data.

Korex is owned 50% by Aminex and 50% by Chosun Energy Pte. Ltd. of Singapore, a member of the Triton Energy group of companies.

Aminex noted it has been pursuing opportunities to explore North Korea’s potential for more than 10 years. It signed a petroleum cooperation agreement in 2004, but subsequent exploration agreements have been difficult to progress on account of international politics.

The East Sea, or western Sea of Japan, is a lightly explored area with potential for large oil-bearing structures that may involve introducing larger companies as partners at a later date if it is to be explored comprehensively (OGJ, Jan. 4, 1999, p. 62).