Eric Watkins
Senior Correspondent
LOS ANGELES, Sept. 26 -- South Korea's government is seeking to jointly develop North Korean oil and natural gas resources and is currently evaluating their commercial potential.
The Ministry of Commerce, Industry, and Energy told lawmakers at a parliamentary audit session on Sept. 22 that small amounts of crude oil have been found in North Korea's continental shelf in the West Sea.
The ministry said Korea National Oil Corp. procured data on possible oil fields from a Japanese firm that conducted preliminary exploration in the area, but further drilling is needed to determine if the deposits have commercial value.
The Seohanman region east of Nampo saw production of 450 b/d of crude oil in 1985, while 70 b/d were produced at the Ahnju basin area to the north.
Natural gas also has been found in the East Sea near Wonsan, another area attracting interest.
Contact Eric Watkins at [email protected].
