The first two million barrels of crude oil from the Abu Dhabi National Oil Company (ADNOC) in the UAE have arrived at Korea National Oil Corporation (KNOC)’s Yeosu storage facility.
The two million barrels of ADNOC crude oil, which arrived on March 21, were brought into the country under the KNOC-ADNOC International Joint Stockpile Agreement signed during President Yoon Suk-yeol’s state visit to the UAE in January.
The international joint stockpile program leases the KNOC’s storage facilities to store crude oil and petroleum products from customers, including those in oil-producing countries, and secures the preferred purchase rights for Korea to use that volume in the event of an emergency, thereby enhancing Korea’s national energy security.
Apart from the energy security benefits of bringing ADNOC’s crude oil into the country, the KOC said that there are also significant economic benefits. Normally, storing 4 million barrels of UAE crude oil in a stockpile in Korea requires the purchase of stockpile oil worth US$300 million, according to KNOC.