Anchor: The owner of a U.S. geological research company that participated in an analysis of possible oil and gas deposits in waters off the southeastern city of Pohang gave an optimistic outlook on the project. He also addressed the concerns of the local media regarding the reliability of his findings as well as doubts about his firm.  
Koo Heejin has the details.

Report: Vitor Abreu, owner of the U.S.-based geoscience research company Act-Geo, presented a promising outlook on Friday regarding possible oil and gas deposits in the East Sea, saying that the project is “highly prospective.”

At a news conference at the government complex in Sejong City organized by the state-run Korea National Oil Corporation, Abreu said that all the wells his firm analyzed had all the key elements to suggest the presence of oil and gas.

[Sound bite: Act-Geo owner Vitor Abreu]
"Twenty percent is very good in a frontier basin. Just for comparison, the largest discovery in the world in the last 20 or 25 years is the Liza prospect in Guyana. I participated in that well, to drill that well, when I was working for Exxon Mobil. The prospect for the Liza oil field was 16 percent.” 

Abreu said that his firm’s study suggests the possibility of traps and accumulated hydrocarbons in the offshore fields, adding that global oil-related companies are seeing the potential and are already paying great attention.

Still, he noted that a 20 percent possibility for success also means an 80 percent possibility for failure, and that the only way to prove it is to drill. 

The news conference was held after Yoon announced on Monday that up to 14 billion barrels of oil and gas are presumed to be buried under the East Sea, citing an Act-Geo study. The president added that he approved the Ministry of Trade, Industry and Energy's plan for exploration drilling, with an assessment expected in the first half of next year.

Abreu, who is visiting Seoul at the invitation of the KNOC, also addressed media concerns about a contrasting report by Australia’s Woodside Energy, which withdrew from the exploration with the KNOC in January 2023 after nearly 16 years.

Woodside stated in its annual report that it had exited from “futureless” mining projects, including the one in South Korea, to optimize its exploration and production portfolios.

Abreu said in a statement prior to Friday’s conference that Woodside Energy did not get a chance to conduct an in-depth analysis of survey data due to its early withdrawal.

Senior KNOC official Kwak Won-jun, speaking at Friday's press conference, said Woodside Energy had notified the KNOC of the intended withdrawal in March 2022, just a year after starting the analysis of data from an extended exploration.

Abreu also addressed doubts about the reliability of his firm, confirming that its listed address is that of his personal residence, adding that his team works remotely from locations all over the world as only computers, software and cameras are required for the job.
Koo Heejin, KBS World Radio News.