Seoul: Britain's BP has been identified as the preferred bidder for a significant gas development project in South Korea's East Sea, according to industry sources. The Korea National Oil Corp. (KNOC) has made an internal decision and is currently discussing the results with the Ministry of Trade, Industry and Resources before an official announcement is made.

According to Yonhap News Agency, KNOC initiated the bidding process in March to find a foreign partner to acquire up to a 49 percent stake in the project. This initiative aims to develop seven potential oil and gas reserves located in the deep sea off the coast of Yeongil Bay in Pohang, approximately 270 kilometers southeast of Seoul.

The Korean corporation conducted exploratory drilling into one of the prospects, named the "blue whale prospect," over a two-month period starting in December. The conclusion was that this particular prospect lacked economic feasibility. As a result, KNOC plans to establish a new business plan for the deep-sea gas development project after selecting a preferred bidder, which includes considering additional exploratory drilling of the potential reserves.

BP was favored as the preferred bidder due to its application for the largest stake and submission of a comprehensive road map for developing the gas prospects. Several foreign companies, including U.S. oil major ExxonMobil, were reported to have participated in the bidding process.

In a related development, the industry ministry has decided to request the Board of Audit and Inspection to examine controversies linked to the deep-sea gas project. This includes scrutinizing the selection of U.S.-based geoscience consulting firm Act-Geo as an advisory firm for conducting an initial feasibility study on the project.