LONDON -- Korex has signed a Production Sharing Contract (PSC) with North Korea’s state-owned Korea Oil Exploration Co. (KOEC) covering exploration rights in the Korean East Sea.
The 10-year PSC, replacing a previous contract, covers around 50,681 sq km (19,568 sq mi) off North Korea’s east coast and is divided into deep and shallow water areas.
The exploration term is divided into four periods, the first three of two years each and the final one of four years. The first period work commitment involves completing work on existing data and acquiring new marine 2D seismic data.
Korex is 50% owned by Aminex and 50% by Chosun Energy of Singapore.
Aminex Chairman Brian Hall said: “Aminex has been pursuing opportunities to explore the potential of the Democratic People’s Republic of Korea for over 10 years and signed a Petroleum Co-operation Agreement in 2004. Subsequent exploration agreements have been difficult to progress on account of international politics.
“The East Sea is a lightly explored area but with potential for large oil-bearing structures which may involve introducing larger companies as partners at a later date if it is to be explored comprehensively.”