GS Caltex has become the first South Korean company to import US crude oil in 41 years, the company said Monday.

Korea’s second-largest oil refiner said the large crude carrier IZKI loaded with 1 million barrels of US Eagle Ford Crude arrived Sunday at a port in Yeosu, South Jeolla Province. The company purchased the crude in July. The unloading work will be finished by Tuesday.
 

Eagle Ford Crude is one of the shale oil types produced in Eagle Ford, Texas. It is generally classified as low-sulfur crude oil (API 45-56).

While local oil companies have previously introduced a total of 1.1 million barrels of condensate and 1.7 million barrels of Alaska North Slope Crude from the US, this is the first time a Korean firm has imported crude oil from the US since a 41-year embargo was lifted.

The US imposed a trade embargo on its crude oil in 1975 after the 1973 oil crisis hit the global economy. It lifted the measures in December last year.

“(The company) decided to purchase the US crude as the economic feasibility of the crude was ensured amid the weakening West Texas Intermediate, falling crude freight charges and other cost-saving efforts,” GS Caltex officials said, adding that the company will continue looking for other economically feasible crude oil and introduce it to the Korean market.

It is planning to introduce 1 million barrels of additional Eagle Ford Crude next month.

Until recently, Korean oil refiners have depended on the Middle East for 80 percent of its crude import due to the shorter distance and cheaper price.

The companies, however, started to eye crude in other regions amid the fast-changing oil industry.

Since the economic sanctions on Iran were lifted earlier this year, local oil refiners have imported a large amount of crude from Iran, citing the price benefits.

According to the state-run Korea Natural Oil Corp.’s oil information provider Petronet, the crude import amount of Iranian crude from January to September this year, including condensate, reached 78 million barrels worth about $3 billion. The import amount jumped by 106 percent on-year.

Earlier last month, SK Energy and GS Caltex also purchased 2 million barrels of Kazakhstani crude oil.

By Lee Hyun-jeong (rene@heraldcorp.com)