Executive Summary 7

SWOT Analysis .9

South Korea Political SWOT .... 9

South Korea Economic SWOT .. 9

South Korea Business Environment SWOT . 10

South Korea Energy Market Overview ......11

Global Oil Market Overview ......12

Table: Global Oil Consumption (000b/d) . 13

Table: Global Oil Production (000b/d) ..... 14

Oil Price Outlook ...15

Waiting For A Correction ... 15

Table: Crude Price Assumptions 2007/08 . 16

Revised Forecasts ...... 16

Table: Oil Price Forecasts ...... 17

Regional Energy Market Overview 18

Oil Supply And Demand ...... 18

Table: Asia Pacific Oil Consumption (000b/d) .. 19

Table: Asia Pacific Oil Production (000b/d) ..... 20

Oil: Downstream 21

Table: Asia Pacific Oil Refining Capacity (000b/d) .... 21

Gas Supply And Demand .... 22

Table: Asia Pacific Gas Consumption (bcm) ..... 22

Table: Asia Pacific Gas Production (bcm) . 23

Liquefied Natural Gas 24

Table: Asia Pacific LNG Exports/(Imports) (bcm) ...... 24

Business Environment Ranking 25

Asia Pacific Region 25

Composite Scores .. 25

Upstream Scores ... 26

Table: Regional Upstream Business Environment Rating.... 26

Downstream Scores 27

Table: Regional Downstream Business Environment Ratin 27

South Korea Upstream Rating – Overview . 28

South Korea Upstream Rating – Potential Returns ..... 28

South Korea Upstream Rating – Risks To Potential Returns ..... 28

South Korea Downstream Rating – Overview .... 28

South Korea Downstream Rating – Potential Returns 28

South Korea Downstream Rating – Risks To Potential Re 29

Business Environment .30

Legal Framework 30

Infrastructure.. 32

Labour Force.. 34

Foreign Investment Policy .. 35

Tax Regime. 37

Industry Forecast Scenario ......39

Oil And Gas Reserves 39

Oil Supply And Demand ...... 39
Gas Supply And Demand .... 40
LNG 40
Refining And Oil Products Trade . 41
Revenues/Import Costs . 41
Table: South Korea Oil & Gas – Historic Data & Forecasts .... 42
Other Energy .. 43
Table: South Korea Other Energy – Historic Data & Forecasts 44
Key Risks To BMI’s Forecast Scenario . 44
Macroeconomic Outlook ....45
Table: South Korea – Economic Activity .. 46
Regional Case Study ...47
Gazprom In The Asia Pacific Region . 47
Competitive Landscape 50
Executive Summary 50
Table: Key Players – South Korean Oil & Gas Sector 51
Overview/State Role ... 51
Table: Key Upstream Players . 52
Table: Key Downstream Players ..... 52
Company Monitor .53
Korea National Oil Company (KNOC) . 53
GS-Caltex – Summary .... 57
SK Energy – Summary ... 57
S-Oil – Summary ... 58
Kogas – Summary . 58
Hyundai Oilbank – Summary .. 59
Woodside Petroleum – Summary ..... 59
Glossary Of Terms ......60
Oil & Gas Ratings: Revised Methodology 61
Introduction 61
Ratings Overview 61
Table: BMI Oil & Gas Business Environment Ratings: Structure 62
Indicators . 63
Table: BMI Oil & Gas Business Environment Upstream Ratings: Methodology 63
Table: BMI Oil & Gas Business Environment Downstream Ratings: Methodology .. 64
Oil & Gas Outlook: Long-term Forecasts .66
Global Oil Demand 66
Table: Global Oil Demand (000b/d) 66
Table: Global Oil Production (000b/d) ..... 67
Global Oil Supply ...... 67
Global Gas Demand .. 68
Table: Global Gas Demand (bcm) ... 68
Global Gas Supply ..... 68
Table: Global Gas Production (bcm) . 69
Regional Oil Demand 69
Table: Asia Pacific Oil Consumption (000b/d) .. 70
Regional Oil Supply ... 70
Table: Asia Pacific Oil Production (000b/d) ..... 71
Regional Refining Capacity 71
Table: Asia Pacific Oil Refining Capacity (000b/d) .... 72
Regional Gas Demand . 72 Table: Asia Pacific Gas Consumption (bcm) ..... 73 Regional Gas Supply .. 73 Table: Asia Pacific Gas Production (bcm) . 74 South Korea Country Overview ... 74 BMI Forecast Modelling 75 How We Generate Our Industry Forecasts .... 75 Energy Industry 76 Cross Checks .. 76 Sources .... 76