Saudi Arabia agrees to prioritize oil shipments to S. Korea: minister
Industry Minister Kim Jung-kwan said Sunday that Saudi Arabia has promised to prioritize oil shipments to South Korea as Seoul seeks an alternative route through the Red Sea, Yonhap reports.
Authorities in Seoul are pushing to dispatch five Korean-flagged vessels to the Saudi port city of Yanbu on the Red Sea coast to help establish alternative supply routes as the Strait of Hormuz has been effectively shut down amid the Middle East conflict.
"We are preparing measures to allow our vessels to use the Red Sea route, including the possibility of escort operations by the Cheonghae unit's Dae Joyoung destroyer," Kim said during a radio interview.
Kim emphasized that Saudi authorities have pledged to allocate shipments to South Korea on a priority basis.
Kim added that the government is considering diversifying crude oil imports by increasing purchases from the United States and Kazakhstan.
"This is an era in which securing resources is extremely important, alongside economic feasibility and efficiency," he said.
Oil prices have surged following U.S.-Israeli strikes on Iran in late February, heightening concerns over economic growth and inflation in South Korea, which highly depends on imports from the Middle East for its energy supply.
Previously, it was reported South Korea's top presidential aide is to visit Kazakhstan, Oman, Saudi Arabia to discuss securing crude oil, naphtha.
