President Donald Trump said Friday that South Korea’s investment agreement with the United States now includes $8.4 billion for an enhanced oil recovery project. Seoul says it agreed to no such thing.
“The Republic of Korea Deal keeps getting BETTER! 8.4 Billion Dollars for an enhanced Oil Recovery Project. Producing more Oil and Gas means American Energy Dominance and Energy Security in the World for the Future!” Trump wrote on Truth Social.
Enhanced oil recovery (EOR) is used to squeeze more production from aging fields after extraction slows using conventional methods. The process can involve injecting carbon dioxide, natural gas, steam, or other materials into a reservoir to push more oil toward producing wells.
The Truth Social post did not identify the field, operator, or location of the $8.4 billion project.
South Korea’s industry ministry said the EOR investment was not included in the strategic investment agreement reached between the two countries. Seoul has asked Washington for clarification, according to Yonhap.
This isn’t the only round of U.S.-South Korean investment announcements this week, and just a couple weeks ago, South Korea said it was looking to cut its reliance on Middle Eastern crude by as much as half by 2035.
Trump said Wednesday that South Korea would put $200 billion into U.S. projects, including eight large nuclear power plants, a 6-gigawatt power generation facility in Texas and a pipeline associated with the Alaska LNG project. That $200 billion sits alongside another $150 billion pledged for shipbuilding under a broader $350 billion investment package negotiated last year.
Seoul has been considerably more cautious about the Alaska piece. South Korea’s government says participation in the roughly $54 billion pipeline project remains subject to commercial viability and legal review, with no final investment decision yet made.
By Julianne Geiger for Oilprice.com
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