KNOC inks 4 mln-barrel oil storage agreement with Kuwait

Published : Oct 31, 2024 - 21:15 Updated : Oct 31, 2024 - 21:15

Kim Dong-sub, CEO of Korea National Oil Corp. (fourth from left, front row), KPC Chairman Shaikh Nawaf Saud Al-Sabah (fourth from right, front row), and South Korean Ambassador to Kuwait Park Jong-seok (third from left, front row) pose for a commemorative photo following a joint stockpiling signing ceremony at KPC's headquarters in Kuwait, Thursday. (KNOC)

South Korea's state-run oil company said Thursday it has signed an agreement with Kuwait Petroleum Corporation to store 4 million barrels of oil from the Middle Eastern country that can be accessed in case of a global energy crisis, adding to Seoul's efforts to secure a stable supply of energy sources.

Under the agreement, the Korea National Oil Corp. (KNOC) will store the barrels in the southeastern industrial city of Ulsan, where they can be supplied domestically when needed.

"Amid the escalating tension in the Middle East following the Israel-Iran conflict, this deal will allow South Korea to proactively secure crude from the region and bolster its readiness in terms of energy security," the KNOC said in a statement.

For Kuwait, the agreement offers a secure regional hub to ensure a stable supply for its other Asian clients, the company added.

The KNOC, meanwhile, signed similar deals last year with Saudi Arabia and the United Arab Emirates, hosting a combined 13.3 million barrels of crude in South Korea.

"As South Korea depends on the Middle East for 72 percent of its crude demand, the agreements with the top three partners will significantly contribute to our energy security," the industry ministry said in a statement. (Yonhap)