Oil Exploration, Development, Stockpiling, and Distribution

[INQ. NO. 2020M02] KNOC is a government-owned oil company specializing in oil exploration, development, stockpiling, and distribution with the goal of stably supplying energy to the people of Korea and contributing to the national economy.

Global Oil E&P Business
KNOC is actively engaged in oil-development projects all over the world to ensure a stable supply of oil. Currently, KNOC is participating in 32 promising oil development projects in 16 countries (including three in Korea), producing about 172,000 barrels a day on average, with reserves equivalent to about 1.276 billion barrels of oil.

Oil Stockpiling
KNOC operates nine stockpiling bases nationwide, securing an oil reserve of 96.5 million barrels in stockpile facilities with a capacity of 146 million barrels. This reserve is equivalent to 89 days of net imports based on data from the International Energy Agency (IEA). In addition, KNOC is striving to improve its crisis response capabilities by efficiently operating oil reserves and stockpiling facilities, and to develop Korea as an oil logistics hub in Northeast Asia.

Improvement in Distribution Structure
KNOC supplies high-quality oil products to 1,194 discount gas stations nationwide at reasonable prices. As KNOC’s supply price for discount gas stations has become the standard price for oil transactions, it is contributing to creating a transparent oil trading environment and improving the oil distribution structure.

New Energy Business
KNOC is promoting eco-friendly energy development projects such as floating offshore wind power to actively respond to the government’s ‘Renewable Energy 3020 Implementation Plan’ to increase the share of renewable energy to 20% of total energy by 2030. KNOC is also leading the way in hydrogen manufacturing using natural gas on the domestic continental shelf, which has a lower production-cost than imported natural gas. Furthermore, KNOC is planning to import hydrogen from overseas gas production projects, through which the produced CO2 will be used to enhance oil recovery.

 
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