Korea will send special envoys to Saudi Arabia, Oman and Algeria to secure stable supplies of crude oil amid prolonged disruptions after the U.S. and Israel began their attacks on Iran Feb. 28, according to the government and the ruling party, Monday.

The diplomatic move came as the Strait of Hormuz, the main passage for crude imports to Korea, has been effectively blocked, raising the need to secure alternative crude sources.

“Securing alternative crude oil supplies is the most urgent task in the Middle East crisis,” Rep. Ahn Do-geol of the ruling Democratic Party of Korea (DPK) said after a meeting between the party and government officials from relevant ministries.

“We will make every diplomatic effort to obtain crude oil. (As part of the efforts), the government and the party agreed to dispatch special envoys to three countries — Saudi Arabia, Oman and Algeria.”

Ahn said Korean-flagged ships would be deployed on alternative routes for crude oil supply, noting the government plans to dispatch five Korean-flagged vessels to the Red Sea, specifically to the Saudi port of Yanbu.

The port is where Saudi Arabia began diverting millions of barrels of crude oil for ships that would have normally transited the Strait of Hormuz.

Previously, nearly 70 percent of Korea’s imported crude oil passed through the strait. A total of 26 Koreanflagged vessels, most of them oil and petroleum product carriers, are stranded in the vital waterway.

Regarding the 26 ships, the Ministry of Foreign Affairs said that it is “engaging through multiple channels” to ensure the safety of 173 crewmembers aboard.

“We are maintaining continuous dialogue, participating in multilateral meetings such as the U.K.led foreign ministers’ meeting and the Frenchled chiefs-of-staff meeting, while also holding talks with Iran through foreign minister calls and embassy channels,” a ministry official said.

“The safety of ships and crew remains the top priority, and the positions of shipping companies are being carefully considered,” he said.

“International coordination is also important, and we need to take the war situation into consideration because the situation is rapidly changing,” he added, referring to U.S. President Donald Trump’s decision to extend the deadline for Iran to make a deal to reopen the strait to Wednesday at 9 a.m. Korea time.

The official noted that there were no indications that the 26 vessels were attempting to pass through the strait, although vessels linked to Japan and France successfully made their way out last week.

Another ministry official said that making simple comparisons between vessels that have passed through the strait and those that have not “may not fully reflect the safety conditions in the strait.” He noted that the situation differs by the nationality of ships, ownership, operators, cargo type, destination and crew nationality.

In the meantime, the government and the DPK also discussed using strategic reserves to ease short-term supply challenges.

Ahn explained that the government will first supply these reserves to private refiners, and once overseas-procured crude oil arrives in Korea, the refiners will swap an equivalent amount back to the government.

Regarding naphtha, he added that the supply chains for 50 major industries are being closely monitored to ensure stable distribution.

Naphtha is a basic petrochemical feedstock refined from crude oil and serves as the starting material for nearly all chemical industries. Korea’s reliance on Middle Eastern naphtha is roughly 70 percent, similar to its crude oil dependence.
Source: The Korea Times