March 20 (Asia Today) — South Korea’s Industry Ministry has launched an audit of the Korea National Oil Corp. after about 900,000 barrels of crude stored under the country’s international joint stockpiling program were sold overseas without the state oil company exercising its priority purchase right, according to Asia Today and the ministry.

The oil had been owned by a foreign company and stored at a reserve facility in Ulsan under a program that allows overseas suppliers, including oil-producing countries and foreign firms, to use South Korea’s spare storage capacity. In an emergency, South Korea is supposed to have the first option to buy that oil.

The ministry said the Korea National Oil Corp. did not immediately exercise that right before the crude was sold abroad. It added that the audit would determine whether the company violated internal rules or procedures.

The international joint stockpiling program began in 1999 as part of efforts to stabilize domestic oil supply and demand.

The ministry said any confirmed violations would result in strict disciplinary action.

— Reported by Asia Today; translated by UPI

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Original Korean report: