Press reports in mid-May said South Korea's state Korea National Oil Corp. was considering participation in an exploration project off North Korea's west coast.
North Korean sources placed potential off Nanpo at 5 to 40 billion bbl of oil, but this is considered highly speculative.
High oil prices were said to be a factor in reassessing existing exploration data from the area.
A KNOC official was quoted as saying the company was seeking talks with North Korean officials in June or July.
The West Korea Bay basin is geologically analogous to northeastern China's Bohai Bay, said the US Energy Information Administration.
Global GeoServices of Norway reported last October that it planned to acquire seismic surveys offshore, but KNOC said its contract has expired.
Concessions previously held by Taurus Petroleum of Sweden, Soco International of the UK, and Beach Petroleum of Australia lapsed. Petronas of Malaysia took over Block A, previously held by Soco (see map, OGJ, Jan. 4, 1999, p. 62).
