Middle Eastern Oil Producers Interested in Using South Korean Oil Storage Facilities

JAKARTA - Major oil-producing countries in the Middle East are beginning to show interest in using South Korea's crude oil storage facilities. The interest comes amid the ongoing conflict in the region and disruption of oil shipments due to the closure of the Strait of Hormuz.

Citing Yonhap, Tuesday, April 14, a senior official at the South Korean Ministry of Industry said the number of countries that want to use the country's oil storage facilities continues to increase. According to him, this interest is mainly directed at storage bases in Northeast Asia.

The official, Yang Gi-uk, said Middle Eastern countries were also seriously affected by the disruption of oil shipments, as oil exports account for a large share of their economies.

"Countries such as Saudi Arabia, the United Arab Emirates, and Kuwait are heavily dependent on crude oil exports for their national economies," Yang said.

He added that in addition to the Abu Dhabi National Oil Co. from the UAE, which already has an oil storage agreement with South Korea, other oil producers from the Middle East have also established communication.

However, Yang did not reveal the other countries in question. "I can only say that there are more countries besides the UAE," he said.

This development shows that oil storage facilities in South Korea are beginning to be seen as an important option amid disruptions in the energy supply chain in the Middle East.