Seven oil tankers operated by South Korean refiners are stranded in the Strait of Hormuz, as the energy choke point remains effectively closed amid escalating conflict in the Middle East.
According to the ruling Democratic Party of Korea's Rep. Kim Young-bae, these seven oil tankers are among other South Korean vessels stranded in the strait that connects the Persian Gulf to the open sea. Each of the seven tankers carries at most 2 million barrels of oil, equivalent to South Korea's daily oil consumption.
"We saw demands from companies that actions need to be taken," Kim told reporters Thursday in a briefing after the Democratic Party lawmakers' closed-door meeting with representatives from the business circle and industries affected by the conflict.
Of the oil tankers, two are owned by HD Hyundai Oilbank and one is owned by GS Caltex, Kim said, without providing further details as to the four other tankers and additional 33 other vessels. The three tankers are all carrying nearly 2 million barrels of crude oil.
This came a few days after the Oceans Ministry revealed that 40 vessels have been stranded along the Strait of Hormuz, including 26 in the inner areas of the strait. Moreover, 186 South Koreans are aboard stranded vessels in the area, including 144 on South Korean vessels.
Given the circumstances, representatives of the companies on Thursday inquired in the meeting whether there are any ways for affected refiners to make use of government oil reserves to weather the crisis.
According to government data, the country currently holds oil sufficient for 208 days, including the government's storage of 76.4 million barrels of crude.
However, entrepreneurs during the meeting raised a need for the government to unveil a concrete scenario of how the oil reserves could remain sufficient, with the industry's demand taken into account, Kim said.
The industry representatives also expressed concerns about the long-term impact on South Korea's semiconductor industry if the conflict lingers, according to Kim.
The concerns stem from a hike in chip manufacturing cost in South Korea due to rising energy costs, as well as troubles in the Middle Eastern countries' plan to build data centers, which are considered one of the key destinations for South Korean advanced semiconductor chips.
consnow@heraldcorp.com
