South Korea eyes Kazakh oil amid tensions linked to Iran conflict

South Korea is nearing a major oil supply agreement with Kazakhstan, according to a report by Reuters.

South Korean Industry Minister Kim Jong-kwan said details of the deal, including volumes and logistics, are expected to be announced early next week.

Seoul is seeking to diversify its energy sources, as the country traditionally imports around 70% of its oil from the Middle East. Disruptions in the Strait of Hormuz pose a serious threat to its energy security.

As a result, South Korea is turning its attention to Central Asia. A high-level delegation, including the head of the presidential administration and Kim, has visited Kazakhstan, Oman and Saudi Arabia.

According to the minister, oil shipments from Kazakhstan would take 50–60 days, roughly the same as deliveries from the United States. Despite the long logistics chain, the main goal is to reduce risks associated with the Strait of Hormuz.

At the same time, the country is taking additional steps to strengthen its energy supply. Notably, last month it reached an agreement with the United Arab Emirates for the delivery of 24 million barrels of oil.

Experts say South Korea’s proactive approach is an important factor in maintaining the competitiveness of its industry amid instability in global energy markets.

Earlier, the European Union increased imports of Russian liquefied natural gas against the backdrop of the energy crisis in the Middle East.