EAST SEA GAS FIELD ISSUE

[Anchor Lead]

South Korea also owns a gas field located in the far seas east of Ulsan City. The gas field was developed in 2004 which made Korea also an oil-producing nation. But the reserves here are known to run out soon, and the county is on alert for the development of natural resources. Follow us to the site of the East Sea gas field.

[Pkg]

A steel structure in the middle of the ocean, about 58 kilometers east of Ulsan. This is Korea's "East Sea No. 1 gas field" established in 2004. For 15 years it has been pumping up natural gas and a high quality variety of petroleum from 2.5 kilometers under the sea. So far it has accumulated over 40 million barrels. The cost saved in imports from overseas totals well over two trillion won.

[Soundbite] KIM GWANG-HYUN(KOREA NAT'L OIL CORPORATION) : "The natural gas produced has superb quality so it's supplied with only the moisture removed. The high quality of ultra light oil, a byproduct of natural gas, also enables direct use as car fuel."

This gas field helped Korea earn the status of an oil producing nation but the level of output is decreasing fast. Hourly production once reached 70 tons but now it's dropped to 28.At this pace, reserves are expected to be depleted by the year 2022. This is why strenuous efforts are under way to develop additional natural resources including an exploration of a continental shelf that is three times the size of the Korean Peninsula.

[Soundbite] KIM SEONG-HAE(KNOC) : "Utilizing personnel resources, the continental shelf project is anticipated to deliver positive results."

The East Sea is where these activities are under way as Korea strives to maintain the title of an oil producing country.