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South Korea Taps Argentina for Oil Future
1 Aug
Summary
- South Korea plans to import crude oil from Argentina starting next year.
- Initial imports will total approximately 880,000 barrels.
- The deal aims to reduce reliance on Middle Eastern oil supplies.
South Korea is planning to commence imports of crude oil from Argentina in the upcoming year. This strategic initiative aims to diversify Seoul's energy supply away from its traditional dependence on the Middle East. The initial import volume is projected to be around 880,000 barrels, following a successful trial import conducted by a South Korean company this year.
This agreement was solidified during President Lee Jae Myung's visit to Buenos Aires, where he held discussions with Argentine President Javier Milei. Both governments have committed to supporting the stable initiation of this crude oil trade. Beyond oil, the two nations will also investigate expanded cooperation in sectors such as natural gas, nuclear energy, and crucial minerals like lithium and copper.
Argentina is actively increasing its hydrocarbon output, notably from the Vaca Muerta shale formation. The Argentine government anticipates a substantial rise in its energy exports, creating opportunities for enhanced partnerships with South Korean buyers. Additionally, negotiations have concluded on a double-taxation treaty to foster improved conditions for South Korean investments within Argentina.
