Korea grows more dependent on Gulf oil

South Korea has grown more dependent on the Gulf states for oil imports over the last decade despite its bid to diversify, according to a US Department of Energy report.

Seventy-five percent of the country's imports last year came from the Gulf region, with Saudi Arabia the single-largest source by supplying 29% of South Korea's oil purchases, according to analysis for June.

"This share of oil imports from the Gulf has risen over the last 10 years, despite concerted efforts on the part of South Korean officials to diversify the country's sources of petroleum imports," the report said.

"In 1996, South Korea received 64% of its imports from the Gulf countries," it added.

South Korea is the fifth largest net importer of oil, bringing in an average of 3 million barrels per day (bpd).

It is also the ninth-largest oil consumer in the world, using up about 2.2 million bpd last year.

The US report also said that South Korea's efforts to privatise the electricity sector have been slowed by lagging investor interest and government reluctance.

The country was the second-largest importer of liquefied natural gas (LNG) in 2005, with consumption of natural gas growing rapidly in the last decade.

Twenty-seven per cent of the imports came from Qatar, with 25% from Indonesia, 21% from Malaysia, and 19% from Oman.

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