South Korea announced the potential discovery of significant oil and gas deposits off the coast of Pohang in the East Sea on Monday. A government-commissioned study by U.S. firm Act-Geo estimated the reserves could hold 3.5 to 14 billion barrels, potentially meeting domestic gas demand for 29 years and oil demand for four years. The value is estimated at up to $1.4 trillion.

Exploratory drilling will begin by the end of 2023 to confirm the presence and quantity of the deposits. If successful, preparations for commercial drilling could start in 2027 or 2028, with production potentially beginning in 2035. The reserves are located within South Korea’s exclusive economic zone, but foreign partners may assist with the deep-sea operations. Each drilling spot is estimated to cost over $72.6 million and has a 20% success rate.