Financial Wire

South Korea Reportedly Inks Deal for 273 Million Barrels of Crude Oil From Middle East, Kazakhstan

-- South Korea Presidential Chief of Staff Kang Hoon-sik on Wednesday said the government has reached agreements for the supply of about 273 million barrels of crude oil, sufficient for three months' usage, from the Middle East and Kazakhstan by year-end, according to multiple media reports.

In addition, South Korea has also arranged for the supply of 2.1 million metric tons of naphtha for the same period, said Kang, who recently visited Kazakhstan, Oman, Saudi Arabia and Qatar as a special presidential envoy.

Saudi Arabia has agreed to supply the already agreed upon 50 million barrels of crude oil to South Korean companies in April and May through Red Sea ports. The Kingdom has also agreed to allocate and ship an additional 200 million barrels of crude oil between June and December, along with at least 500,000 tons of naptha, Reuters reported.

South Korea has also secured 18 million barrels of crude oil from Kazakhstan, 5 million barrels of crude oil and 1.6 million tons of naphtha from Oman. Meanwhile, Qatar has assured uninterrupted export of liquefied natural gas, according to the Asia Business Daily.

The energy supplies secured will be transported through alternate routes not related to the Strait of Hormuz, Reuters reported. Flows through the Hormuz accounted for 61% of South Korea's crude oil imports and 54% of its naphtha imports in 2025, the report said.

Meanwhile, in a statement on Wednesday, the South Korean Ministry of Trade, Industry, and Resources said the government will start a 674.4 billion South Korean won ($457 million) program to support additional naptha imports.

The program will cover "50% of the gap between pre-war prices and actual import prices for naphtha volumes contracted between April and June. To help ease short-term supply strains, the program will also cover naphtha substitutes such as [liquefied petroleum gas] and condensate, as well as basic petrochemical feedstocks including ethylene and propylene," the statement said.

The government will also increase the support for freight-cost expenses related to crude oil imports from the Americas, Africa, and Europe. As per the updated surcharge refund program, the government will fully reimburse Middle Eastern crude freight premium costs for April-June imports from those regions, with the increased refund amount estimated at around 127.5 billion won.

The government also intends to accelerate naphtha imports to improve operating rates and work with petrochemical companies to prioritize feedstocks for healthcare products, key industrial goods, and everyday necessities, the statement said.

Korean President's office could not be reached for comment by.

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