The new field is Donghae-2, which in the past is understood to have been referred to as Gorae-8, said sources.

The exact development concept could not be confirmed as Upstream went to press, but it is understood a small platform is being built as part of a tie-in, most likely to Donghae.

The construction phase is under way and will finish in the second quarter of 2016, said sources, with first gas scheduled to flow in the third quarter of 2016.

Daewoo International, which is listed on the Korean Stock Exchange, indicated in a recent investor relations presentation that the field development is a $200 million total investment in Block 6-1C (Central). State-owned KNOC holds a 70% operating interest in the permit, with Daewoo holding the remaining 30%.

The main Donghae field has been producing for just over 11 years and is wholly-owned by KNOC.

It was South Korea’s first producing field and is located in the Ulleung basin, 58 kilometres south-east of Ulsan.

Production began on 11 July 2004, and was a significant event for KNOC as it was its first operated development.

KNOC has since gone on to become a major global oil and gas company.

The company’s chief executive Suh Moon-Kyu said recently that exploration drilling is under way at its Sangaw South block in Iraq and more drilling is earmarked for October 2015 in the Hongge structure at the Donghae-8 field.

“These are critical tasks that we must see through to success. We have to mobilise all resources for the two drilling projects to secure future growth engines and further increase the momentum behind our oil developments,” he added.

KNOC’s joint venture partner in Block 6-1C — Daewoo International — has also become an operator, and its claim to fame is being the operator of the giant Shwe gas development in Myanmar.

The same two companies are also joint venture partners in Block 6-1S (South), which runs along the southern border of the Donghae field.

Daewoo is the operator of Block 6-1S with a 70% interest while KNOC holds 30%.

Daewoo indicated in its presentation that a discovery called Gorae D was made earlier this year in Block 6-1S.

Sources confirmed that gas was discovered and flow testing confirmed a discovery, but the reserves are deemed to be marginal due to the current price of oil.

Nevertheless, studies are under way on potential development concepts for Gorae D.

Block 6-1S is a proven hydrocarbon area and an extensive exploration programme is planned between 2015 and 2018, said sources.

More than 900 square kilometres of 3D seismic has been acquired in 2015 and two or three exploratory wells are planned to be drilled in early 2017.

If hydrocarbons are discovered in any of these wells, appraisal wells will be drilled in 2018, added sources.

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KNOC and Daewoo eye new project at Donghae