South Korea to import Argentine crude from 2027 after trial shipments

South Korea plans to begin importing crude oil from Argentina in 2027, after several domestic refining and petrochemical companies completed trial shipments and feedstock testing, paving the way for the country to further diversify its supply sources beyond the Persian Gulf, according to multiple government ministries and industry sources over Aug. 4-11.

Following a summit between President Lee Jae-myung and Argentine President Javier Milei in Buenos Aires, the two governments agreed to cooperate to ensure the planned crude oil trades proceed smoothly, while also exploring broader energy cooperation in natural gas and nuclear power, the Ministry of Trade, Industry and Resources, the Ministry of Foreign Affairs and the Presidential Office said in policy briefing reports and official social media posts over Aug. 4-7.

The government ministries, however, did not specify the planned import volume.

The Argentina arrangement fits into South Korean refining industry's efforts to reduce reliance on Middle Eastern sour crude by diversifying supply sources across other regions, including South America, feedstock managers at three major refiners in Ulsan, Seosan and Seoul told Platts, part of S&P Global Energy, during market discussion sessions over Aug. 7-11.

South Korea — Asia's third-largest crude importer — regularly buys various sweet and sour crude grades from Mexico and Brazil. However, the country's refining industry has not taken any Argentine crude cargo since purchasing 300,000 barrels in October 2010, a feedstock manager at a Ulsan-based refiner told Platts on Aug. 11, citing data from state-run Korea National Oil Corp.

In the first half of 2026, South Korea imported 291.2 million barrels of sour crude from the Middle East, accounting for 62% of its total crude intake of 467.1 million barrels, the latest KNOC data showed July 28. Meanwhile, shipments from Latin American suppliers totaled 20.5 million barrels during the same period, the data showed.

The planned Argentine supply would add another non-Middle Eastern source to South Korean refining industry's feedstock procurement mix, potentially improving resilience against geopolitical disruptions affecting traditional shipping routes, according to the Presidential Office statement.

Among Argentina's export crude grades, Medanito has been attracting several East Asian buyers in recent trading cycles. A few spot cargoes for delivery in the late third quarter and early fourth quarter were sold in the Far East Asian market, Singapore-based traders with direct knowledge of the matter said throughout July and over Aug. 1-11.

Among spot deals concluded, Taiwan's CPC Corp. purchased its first cargo of Medanito crude for arrival in September from an oil major, according to several trade sources.

The light sweet crude, produced in Vaca Muerta, has a gravity of about 40.8 API and a sulfur content of about 0.15%. Trade sources said its quality is similar to that of WTI Midland.

Platts assessed Medanito on an FOB basis at a $2/barrel discount to the Latin American Brent futures strip on Aug. 10, rebounding strongly after falling to a three-and-a-half-year low of minus $7.60/b on July 9 amid growing Asian demand.