South Korea secured an additional 2 million barrels of crude oil on Sunday as concerns over oil supply disruptions grow amid the prolonged conflict between the U.S., Israel, and Iran.
Korea National Oil Corporation (KNOC) announced that 2 million barrels of Kuwaiti crude arrived at its Ulsan oil stockpile base, where intake operations are now underway.
The 2 million barrels represent South Korea's daily oil consumption. The additional supply comes as Iran's threats to blockade the Strait of Hormuz raise concerns about potential disruptions to crude oil supplies amid escalating Middle East tensions.
KNOC signed an "international joint stockpiling agreement" with Kuwait Petroleum Corporation (KPC) in 2024 to store 4 million barrels of crude at the Ulsan facility. Sunday's delivery represents the arrival of KPC's joint stockpiling volume under that agreement.
The international joint stockpiling program leases KNOC's idle storage facilities to foreign state-owned oil companies. The arrangement generates rental income during normal times while securing priority purchase rights for the stored crude during emergencies. The program is considered a key tool for securing additional supplies during oil crises.
Sohn Joo-seok, who was inaugurated as KNOC's new president on Saturday, visited the Ulsan stockpile base on Sunday to inspect emergency preparedness for potential oil reserve releases.
"In the event of an oil supply crisis, KNOC must contribute to supply stabilization through various measures including releasing stockpiled oil," Sohn said. "We are taking every precaution through repeated simulations to ensure reserve releases can proceed smoothly according to the processes specified in our manuals."
KNOC currently operates nine oil stockpile bases across South Korea, including facilities in Ulsan, Geoje, and Yeosu. As of the end of February, approximately 100 million barrels of oil are stored in facilities with a total capacity of 146 million barrels.