Korea finds quality oil field in Vietnam

Korea has succeeded in finding a high-quality oil field in the southern coast of Vietnam, with expectations that it could bring crude oil into Korea starting in 2004.

Industry sources said that Vietnam's Kulon JOC, where Korea National Oil Corporation and SK Corp. have made joint investments, hit an oil field in southern region and will begin a feasibility study on the mining block.

Kulon JOC is a joint venture, involving Petrovietnam, Conoco of the United States and Geopetrol of France. KNOC has a 23.25% stake in the venture. If its economic feasibility is confirmed, Korea will be able to bring about 23% of the output into Korea.

Ra Byung-Sun, president of KNOC, is expected to meet Wednesday with the Vietnamese deputy premier and planning-investment minister to discuss the exploration project.

KNOC is planning to announce the result of test drilling soon. The field is known to have produced daily 5,600 barrels of good-quality crude oil. Its oil reserve is estimated at more than 240 million barrels.

Lee Myung-Jai mjlee@donga.com