South Korea diversifies oil routes away from Strait of Hormuz

South Korea has secured more than 74 million barrels of crude oil for May, easing concerns over potential supply disruptions, presidential chief of staff Kang Hoon-sik stated.

Kang made the announcement during a press briefing at Cheong Wa Dae, saying the government is making “all-out efforts” to secure additional supplies amid growing uncertainty linked to the war in the Middle East, Yonhap reports.

“For May, we have secured 74.62 million barrels of crude oil — equivalent to 87 percent of last year’s monthly average — so there is little need to be concerned over supply disruptions,” he said.

Kang also noted that by increasing imports from Africa and North America, South Korea has reduced its dependence on the Middle East from 69 percent to 56 percent.

In addition, he said the country has diversified shipping routes away from the Strait of Hormuz, a critical transit point for South Korea’s crude oil imports.

“The decision to import 23.99 million barrels from Saudi Arabia and 16 million barrels from the United Arab Emirates in May via alternative supply routes that bypass the Strait of Hormuz is the result of the government and the private sector’s swift joint response,” Kang said.

Highlighting South Korea’s economic performance, Kang also pointed to stronger-than-expected growth in the first quarter, when real gross domestic product expanded by 1.7 percent from the previous quarter — the fastest pace in five and a half years.

“We cannot let our guard down yet though,” he cautioned, citing high oil and raw material prices as ongoing risks. “We are making all-out efforts to secure alternative supplies of crude oil.”

By Vafa Guliyeva