South Korea Eyes Kazakh Oil to Bypass Middle East Instability
South Korean authorities are preparing to purchase crude oil from Kazakhstan as ongoing military conflicts in the Middle East threaten traditional supply routes, Reuters reports.
A South Korean delegation travelled to the Central Asian nation in early April to negotiate the delivery of crude oil and naphtha. Seoul is currently highly vulnerable to Middle Eastern geopolitical shifts as up to 70% of its hydrocarbon imports originate from the region.
South Korea’s Industry Minister Kim Chong Kwan announced that the government is prepared to disclose specific volumes for the Kazakh oil imports next week. He also sought to address any logistical concerns regarding the new trade route.
He noted that while Kazakhstan might seem incredibly distant the actual shipping duration is comparable to importing from the United States, taking roughly 50 to 60 days.
This diplomatic push into Central Asia is a key component of Seoul’s broader strategy to secure and diversify its energy sources. The move closely follows a recent commitment from the United Arab Emirates to supply South Korea with 24 mln barrels of oil.
The pivot towards Kazakhstan aligns perfectly with a significant boost in the country’s petroleum sector. Last year the republic extracted 99.6 mln tonnes of oil representing an annual growth of 13.5%.
The bulk of this production was driven by the massive Tengiz field situated in the Atyrau region. On the international front Kazakhstan exported 76 mln tonnes of oil which marked a 7% increase compared to the previous year.
