South Korea nears oil supply deal with Kazakhstan

South Korea is moving closer to securing a stable supply of crude oil from Kazakhstan as part of a strategic effort to diversify its energy sources. The initiative comes in response to heightened volatility in the Middle East, which has traditionally supplied the bulk of the nation's fuel requirements.

Industry Minister Kim Jung-kwan reported significant progress in bilateral negotiations following a recent high-level diplomatic mission to the Central Asian country. The minister indicated that the government is preparing to release specific details regarding the volume and terms of the agreement early next week.

"There has been quite some progress, so we should be able to announce specific amounts and details early next week."

The push for new suppliers like Kazakhstan is intended to mitigate risks associated with shipping disruptions in the Strait of Hormuz. South Korea is looking to diversify its procurement of energy products, including naphtha and global benchmarks such as Brent Crude Oil, to ensure long-term stability. Despite the distance, officials emphasized that the logistics of importing from Central Asia are comparable to those of other major partners.

"Kazakhstan might sound very far, but it actually takes about the same time with shipments from the U.S."

According to Minister Kim, shipping times from the United States, a key source of West Texas Oil, typically span 50 to 60 days, which is roughly equivalent to the transit time from Kazakhstan. South Korea currently relies on Middle Eastern imports for approximately 70% of its oil. To further address this dependency, the government recently secured a commitment from the United Arab Emirates to provide 24 million barrels of crude oil.