Government to import total 24 million barrels of oil from UAE
South Korea heightened its oil resource security alert on Wednesday, citing increased supply risks and rising global prices due to the ongoing conflict in the Middle East.
To ensure a stable energy supply, Seoul announced plans to import a total of 24 million barrels of crude oil from the United Arab Emirates (UAE). This volume is more than eight times the country’s daily oil consumption.
The decision comes as Iran’s response to US-Israeli actions includes blockading the Strait of Hormuz, a critical maritime route for oil and gas transportation. The oil supply from the UAE will originate from a port on the Arabian Sea, effectively bypassing the Strait.
“The government will respond promptly to evolving circumstances, striving to maintain a stable supply and minimize the impact on households and the broader economy,” stated Industry Minister Kim Jung-kwan.
According to the Ministry of Trade, Industry and Resources, the alert level was raised from “attention” to “caution” at 3 p.m. This escalation reflects growing concerns about crude oil supply, shipping conditions, and potential broader economic repercussions as geopolitical uncertainties persist.
The move signifies an increased level of government response to potential disruptions under the country’s four-tier alert system, which includes “attention,” “caution,” “alert,” and “severe.”
These additional oil imports follow a recent visit by a South Korean government delegation to the UAE from Sunday to Tuesday. During the visit, officials secured an emergency commitment for 18 million barrels of crude oil, supplementing an earlier agreement for 6 million barrels made this month.
The latest shipment will consist of 6 million barrels transported by UAE vessels and 12 million barrels carried by South Korean ships. The ministry also noted that a separate vessel carrying naphtha is currently en route to Korea.
The Industry Ministry further stated that the UAE pledged to prioritize South Korea in crude oil supply during emergency situations. Additionally, both nations agreed to establish a direct communication channel to facilitate further purchases if required. They also intend to sign a memorandum of understanding to formalize long-term oil supply cooperation.
The government announced its intention to diversify supply routes, including securing crude oil that circumvents the Strait of Hormuz. It is also preparing to tap into international oil stockpiles if necessary. Currently, a plan is underway to release a portion of the 22.46 million barrels allocated to Korea under coordinated action by the International Energy Agency.
Despite rising global prices, the alert level for natural gas will remain at the lower “attention” level for the time being. The ministry explained that inventory levels exceed mandatory requirements, and alternative supplies have been secured, even in the event of disruptions to Qatari shipments.
In parallel, Seoul will intensify energy-saving measures, including mandatory reductions in the public sector and voluntary – with potential for mandatory – actions to curb private consumption, if needed.
The ministry has been operating an emergency response team since late February, which was recently upgraded to a dedicated task force to monitor daily developments in oil and gas supply, logistics, and industrial impact.
Furthermore, the government announced that it will enhance enforcement of the recently implemented price cap on petroleum products. This includes targeting practices such as hoarding and unfair trade practices to help stabilize consumer prices.
