Russian Ambassador to the Republic of Korea Alexander Timonin observed that Russia and Korea have been working hard for the development of natural gas in Siberia. During a recent interview, he observed: “I hope that the two countries will be able to make further progress in their energy cooperation, such as construction of natural gas pipe lines which connect South and North Korea and Russia, buoyed by the Seoul government’s “New Northern Policy.”
|View of head office building of KOGAS|
The government is seeking to explore a new growth engine for the economy and establish peace on the Korean Peninsula. Korean President Moon Jae-in announced a “New Northern Policy” in his keynote speech during the third Eastern Economic Forum that kicked off on September 7 at the Far Eastern University in Vladivostok, Russia. He said that cooperation among Northeast Asian countries for the successful development of the Far East would be another fundamental solution to the North Korean nuclear issue.
Amb. Timonin said the Russian government has been holding profound discussions with Korean companies including Korea Gas Corp. in an effort to explore energy sources such as natural gas in Siberia and build transportation pipes and other infrastructure.
Of note, newly appointed Korea Gas Corp Chung Seung-il visited Russia on July 24, 2017 to discuss how to strengthen cooperation with Russian gas companies including Gazprom and Novatek.
|CEO & President Chung Seung-il of Korea Gas Corp|
Leading the way in gas-processing technology development, Korea and Russia have been working together in various areas of the globe, moving beyond the Russian Far East.
Last December, Korea Gas Corp. set up a consortium with several companies including Gazprom Neft to operate a gas processing plant in the Badra oil field. The Badra oil field situated in the Wasit Province of eastern Iraq is estimated to hold reserves of about three billion barrels of crude oil. The Iraqi oil field stretches about 16km long and six km wide.
The production capacity was set to rise to 170,000 barrels of oil per day by 2017. The field life is expected to be 20 years with an option to extend by five additional years.
The field is operated by Gazprom Neft, which owns 30% stake in the project in partnership with Korea Gas Corp. (KOGAS, 22.5%), Petronas of Malaysia (15% ), TPAO (7.5% ) and Iraqi Oil Exploration Company (OEC, 25%).
|An employee of KOGAS inspects for safety check and gas leakage.|
First oil from the field was produced in December 2013 followed by first commercial production and oil delivery in September 2014. Badra contains light crude oil close to brent blend with an API gravity of 34° to 35° and a sulphur content of three to four percent. Two wells are in production and three more wells are being drilled at the field under a contract with the Chinese company ZPEC.
After taking office in early January this year, CEO & President Chung Seung-il put an emergency management system in place to speed up internal stability and management reform. He stressed the necessity for innovation of the entire management system and organizational culture.
Korea Gas Corp. operated a task force involving four areas--organization, personnel, supply and strategy--during February to work out implementation measures for innovation across business.
The corporation, meanwhile, exerted maximum efforts to ensure stable gas supply to PyeongChang Winter Olympics facilities in like Gangnung and Pyeongchang while the Games were underway. Efforts also were made to ensure the safety of gas facilities in the Olympic cities.
Hwi Won email@example.com
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