The overseas investment attraction company for the East Sea deep-sea gas field development project, which gained attention as the 'Great Whale Project', is expected to be decided as early as immediately after the Chuseok holiday. It is known that British Petroleum (BP) and ExxonMobil, global oil and gas companies, are included in this bid, which involved at least two foreign companies.

Previously, the Korea National Oil Corporation announced on the 21st of last month that more than two foreign companies participated in the bid for investment attraction in the East Sea offshore block. All of these companies are either pursuing deep-sea development projects with a daily production capacity of over 100,000 barrels or have directly collaborated with the oil corporation in the past three years. No domestic companies participated in this bid.

This project aims to develop approximately 20,058 square kilometers of four offshore blocks (8NE, 8/6-1W, 6-1E, 6-1S) within the Ulleung Basin. The oil corporation, through its investment advisory firm S&P Global, plans to select a preferred negotiation partner by mid-October at the earliest. Once selected as the preferred negotiation partner, detailed negotiations will proceed to the signing process of the exploration rights contract.

BP's participation in this bid has drawn attention. BP is mentioned as the company that requested an extension of the bid deadline when the oil corporation's deadline was imminent in June this year. The news of the participation of a company that has successfully developed at least 11 deep-sea gas fields worldwide has raised the project's feasibility.

There is also speculation about ExxonMobil's potential participation. ExxonMobil is known to have participated in additional verification related to the project's feasibility before the Great Whale Project was announced. In July last year, when the oil corporation held an investment attraction briefing ahead of the first exploratory drilling, ExxonMobil reportedly made direct contact.

Companies participating in the project can invest up to 49% of the shares. The remaining 51% belongs to the oil corporation, which seems to be aimed at reducing the investment risk for foreign companies by securing a majority stake. Investment companies can also select exploratory drilling locations directly, based on their analysis, in addition to existing promising structures (structures where oil or gas is likely to be found). This is to increase the success rate by having companies with extensive deep-sea gas field development experience directly lead the project.

The East Sea deep-sea gas field development project is a key resource development project of former President Yoon Suk-yeol. At the end of 2023, a feasibility evaluation by the American consulting firm Actgeo suggested the possibility of 3.5 billion to 14 billion barrels of oil and gas being buried. However, the 'Great Whale Structure', which was expected as the top priority exploration structure last month, was ultimately confirmed to have 'no economic viability' and was completely excluded from future development targets.

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