Tasks and strategies for implementation of each project

Petroleum development in ES&RFE (project)

○ Tasks for action and implementation by step of cooperation

- Preliminary stage (first 3 years; agreement on cooperation, analysis of feasibility, development of cooperation model, etc.)

- Implementation stage (next 5 years)

․Explore, develop, and produce in new oil fields

․Participate in existing oil fields (share purchase, etc)

․Analyze and establish transport infrastructure - Utilization stage (9 years from initiation)

○ Implementation strategies

- Organize a consortium to mitigate business risks

- Maintain partnership between Korean and Russian companies

Oil pipeline construction in ES (project)

○ Tasks for action and implementation by step of cooperation

- Preliminary stage (first 3 years; agreement on cooperation, analysis of feasibility, development of cooperation model, etc.)

․Establish infrastructure, and develop inter-state cooperation models for oil supply

- Construction stage (next 8 years)

․Promote bilateral or multilateral participation in construction of oil pipeline

- Oil pipeline utilization stage (9 years from initiation)

○ Implementation strategies

- Because the pipeline project in ES is promoted by Russian government, inter-governmental agreement is crucial.

- Establish and maintain cooperation among concerned countries to participate in oil projects in connection with the pipeline project

Joint oil storage (project)

○ Tasks for action and implementation by step of cooperation

- Preliminary stage (first 3 years; agreement on cooperation, analysis of feasibility, development of cooperation model, etc.)

․Survey storage facilities under construction

․Examine joint storage comprehensively including relevant facilities - Construction stage (next 5 years)

- Facilities utilization and expansion stage (9 years from initiation)

○ Implementation strategies

- Minimize political and military risks by locating storage sites offshore or around the boundary of countries

- Utilize contract basis at the initial stage, and then permanent and regulatory basis, as in IEA, with the increase of storage volume - Give priority to cooperation between state-run oil companies

Development of Kovikta NG and construction of NGP (project)

○ Tasks for action and implementation by step of cooperation

- Preliminary stage (first 3 years; renewed project promotion through consensus building)

․Devise strategic measures among energy importing countries in NEA against the Kovikta gas field and the UGSS

․Repromote Kovikta gas project (through Korean-China cooperation) - Project implementation stage (next 6 years)

․Analyze detailed feasibility, and start again with the project

․Install NGP

- Utilization and expansion stage (at least 10 years from re-initiation)

․Expand Korea-China-Russia natural gas grid

․Increase gas trade in a combined use of other NG fields

○ Implementation strategies

- Consensus building to re-start the project

Development of Sakha NG and construction of NGP (project)

○ Tasks for action and implementation by step of cooperation

- Preliminary stage (first 5 years; agreement on cooperation, analysis of pre-feasibility, development of cooperation models, etc.)

․Secure mining licenses, and explore - Project implementation stage (next 6 years)

․Detailed analysis of feasibility and development of gas field

․Install NGP

- Utilization stage (at least 12 years from initiation)

․In connection with Kovikta and/or Sakhalin gas projects

○ Implementation strategies

- Build up bilateral and multilateral cooperation

- Devise connection with Kovikta and Sakhalin gas projects Sakhalin oil & gas and construction of NGP (project)

○ Tasks for action and implementation by step of cooperation

- Preliminary stage (first 3 years; agreement on cooperation, analysis of pre-feasibility, development of cooperation models, etc.)

․Secure mining licenses, and explore

․Analyze and prepare for uncertainties involved in oil and gas fields other than Sakhalin-I and II

- Project implementation stage (next 6 years)

․Detailed analysis of feasibility and development of gas project

․Install NGP

- Utilization and expansion stage (at least 10 years from initiation)

․Strategies for connected development of Sakhalin-IV, V, and I

○ Implementation strategies

- Cooperation at the government level is crucial in view of recent changes of Russian policies, and development priorities.

- Continue to cooperate between foreign countries present in Sakhalin, e.g., China and Japan, for resource development

- Devise measures to develop Sakhalin in connection with other regions in consideration of limited reserves of Sakhalin

Coal development in NEA (project)

○ Tasks for action and implementation by step of cooperation

- Preliminary stage (first 4 years; agreement on cooperation, detailed analysis of feasibility, development of cooperation model, etc.)

․Modernize and expand port facilities in Sakhalin

․Survey CCT, and expand the use of it - Project implementation stage (next 3 years)

․Install and expand port infrastructure

․Develop and produce coal through cooperation

․Expand investment in and exchange of CCT

○ Implementation strategies

- Short-term strategies: expand development of coal mines, find promising coal projects, create the climate to develop ES, cooperate

in joint exploration and exploitation, etc.

- Mid- and long-term strategies: increased coal development, and the wider use of CCT

Mineral resources (rare earth minerals) in NEA (project)

○ Tasks for action and implementation by step of cooperation

- Preliminary stage (first 3 years; cooperation agreement, preliminary analysis of feasibility, development of cooperation models, etc.)

․Exploration and development under cooperation - Project implementation stage (next 3 years)

․Detailed analysis of feasibility

․Exploration and development under cooperation

○ Implementation strategies

- Short-term strategies: find promising mineral reserves to develop projects, expand joint exploration and development, etc.

- Mid- and long-term strategies: develop promising mines in China, Russia and North Korea through continued cooperation among importing companies

- Continue consultation among resource-importing countries in the world to cope with oligopolistic mineral markets

Mineral resources (glod, silver, copper, iron, etc.) in NEA (project)

○ Tasks for action and implementation by step of cooperation

- Preliminary stage (first 3 years; cooperation agreement, preliminary analysis of feasibility, development of cooperation models, etc.)

․Exploration and exploitation under cooperation - Project implementation stage (next 3 years)

․Detailed analysis of feasibility

․Joint exploration and development

○ Implementation strategies

- Target mineral resources: gold, silver, copper, iron ore, lead, zinc - Short-term strategies: find promising reserves to expand

development of mineral resources in NEA

- Mid- and long-term strategies: increase development of resources in China, Russia and North Korea through continued cooperation among importing companies

- Continue consultation among resource-importing countries, Korea, Japan, Taiwan, etc., to cope with oligopolistic mineral markets

Connection of electricity networks in NEA (project)

○ Tasks for action and implementation by step of cooperation

- Preliminary stage (first 4 years; cooperation agreement, detailed analysis of feasibility, development of cooperation models, etc.)

․Build trust and consensus for electricity grid connection - Project implementation stage (next 3 years)

․Inter-connect power transmission grids in NEA

․Construct power plants where necessary and appropriate

․Increase expert exchange, develop and implement programs for the cultivation of technology manpower

․Examine a system of electricity sharing under emergency

○ Implementation strategies

- Build trust among NEA countries for inter-state power connection - Analyze detailed feasibility in consideration of secondary benefits,

and compare economics between power inter-connection and electricity generation with fuel import in the consuming country - Maximize benefits of electricity grid connection by promoting a

system of electricity sharing at the same time

- Implement NEA power connection in harmony with South-North electricity cooperation in the Korean peninsular

Connection of electricity networks in South and North Korea (project)

○ Tasks for action and implementation by step of cooperation

- Preliminary stage (first 3 years; cooperation agreement, detailed analysis of feasibility, development of cooperation models, etc.)

․Foster national consensus

․Gain support and cooperation from concerned countries - Project implementation stage (more than next 4 years)

․Connect power grids between South and North Korea

․Increase efficiency through the improvement and repair of generating facilities in North Korea

․Provide technical training, and transfer advanced operation technologies to North Korea

○ Implementation strategies

- Seek support and cooperation from influential countries after official South-North agreement based on national consensus

- Utilize multilateral assurance or 6-party talks to resolve political issues and confrontation

- Decide electricity connection politically at the high-ranking officials meeting after sufficient consultation at the working-level officials and experts meeting

4. Project Group for Business Cooperation on NRE, nuclear