Chief of firm behind potential oil discovery to come to Korea

Industry

Published: 04 Jun. 2024, 18:47

Chief of firm behind potential oil discovery to come to Korea

President Yoon Suk Yeol reveals that a large oil and gas reserve is believed to be buried off the coast of Pohang in the East Sea in a press briefing at the Yongsan presidential office in central Seoul Monday. [JOINT PRESS CORPS]

The founder of ACT-GEO, the U.S.-based research company that spearheaded Korea’s potential discovery of significant oil and gas reserves, will visit the country on Wednesday amid growing suspicions related to his company’s credibility.

The news of his visit follows President Yoon Suk Yeol’s surprise announcement on Monday that as many as 14 billion barrels of oil and gas could possibly lay uncovered in waters off Korea’s east coast near Yeongil Bay in Pohang, North Gyeongsang.

Vitor Abreu, founder and owner of ACT-GEO [SCREEN CAPTURE]

Vitor Abreu, the founder and owner ACT-GEO, is currently active as an adviser and consultant on petroleum exploration.

Yonhap News confirmed his visit via his social media account, through which Abreu said that he is planning to meet with senior officials from the Korea National Oil Corporation (KNOC).

He did not mention his other plans for the trip, such as whether he will be holding a press briefing during his visit to explain any findings, nor did he address increasing speculation about his company.

ACT-GEO is the research company that the Korean government commissioned in February 2023 to conduct an in-depth study in Pohang following a preliminary study indicating that large gas and oil reserves are located in the area. The study found that deposits containing between 3.5 billion and 14 billion barrels of gas may be present.

However, suspicions about the company emerged when online posts revealed that the address of ACT-GEO's headquarters corresponded to a rundown residential building with fewer than 10 employees.

The official website of ACT-GEO also became inaccessible from Tuesday.

The KNOC responded to concerns on Tuesday by pointing to the company's leading role in major projects in countries such has Guyana, Bolivia, Brazil, Myanmar and Kazakhstan since its establishment in 2016.

“ACT-GEO employees possess expertise in deep-water exploration and come from major petroleum companies such as Exxon Mobil, Shell and BP,” the corporation said in a statement. “ACT-GEO operates on a project-based structure, with experts from various backgrounds collaborating under the leadership of Abreu.”

On speculation that the company is an educational center, the KNOC stated that ACT-GEO's primary focus is on exploration and analysis and evaluation, but it also engages in consulting and personnel training.

The KNOC described Abreu as a geologist with more than 30 years of experience and said that he was a key figure behind a discovery in Guyana during his career at Exxon Mobil.

Abreu acquired his doctorate in geology and geophysics at Rice University in Texas. He also sits as an adjunct professor at his alma mater.

He started out his career at Petrobras, Brazil’s state-run oil company, and worked as a senior technical consultant at Exxon Mobil.

He served as the president of the U.S. Society of Sedimentary Geology between 2016 and 2017, and also co-founded the Brazilian energy company Fluxus Oge last year, where he is the chief technology officer.

BY LEE JAE-LIM [lee.jaelim@joongang.co.kr]