"Find alternatives to Hormuz oil"...Seoul ramps up diplomacy to secure supplies from Brazil, Canada and Mexico

[Financial News] The South Korean government has stepped up diplomatic outreach to Brazil, Canada and Mexico, major oil producers in the Americas, to expand crude oil imports. Canada and Brazil rank as the world’s fourth- and roughly seventh-to-ninth-largest oil producers, respectively, while Mexico is around the global top 10. South Korea has long relied heavily on crude from the Middle East, but since the outbreak of war in the region it has made diversification of oil import sources a key priority.
Foreign Minister Cho Hyun held a series of phone calls with the foreign ministers of Canada, Brazil and Mexico between January 13 and 16 to discuss ways to broaden crude oil supply chains.
On the 16th, Foreign Minister Cho Hyun spoke by phone with newly appointed Mexican Foreign Minister Roberto Velasco Álvarez. Cho asked the Mexican government, a major oil producer in Latin America, to cooperate so that South Korean companies can secure stable volumes of crude imports.
The previous day, Cho also held a phone call with Brazilian Foreign Minister Mauro Vieira to exchange views on advancing South Korea–Brazil relations and on the situation in the Middle East. Cho said, "As Brazil is an oil-producing country, I hope to see expanded cooperation in the fields of energy security and supply chains."
Earlier, on the 13th, Cho had a phone conversation with Canadian Foreign Minister Anita Anand to discuss energy supply issues. The two ministers shared deep concern that the volatile situation in the Middle East is having negative ripple effects not only on global security but also on worldwide supply chains.
Cho explained, "Our government is making an all-out, whole-of-government effort to find alternative supply sources, including for crude oil, for items heavily dependent on the Middle East." The two sides also agreed to explore ways to expand cooperation between South Korea and Canada in energy security and supply chains at the bilateral level.
South Korea has been importing crude oil from Brazil since 2020, and the share of Brazilian oil in its total imports rose to 2.3% in 2022. Last year, HD Hyundai Oilbank also imported crude from Canada.
Canada is regarded as an emerging major oil producer. On the back of oil sands development and increased production, it has firmly joined the ranks of the world’s leading oil-producing countries since the 2010s.
Brazil joined OPEC Plus (OPEC+) in 2023, a group made up of major oil-producing countries. OPEC+ consists of 12 member states of the Organization of the Petroleum Exporting Countries (OPEC) and 10 non-OPEC producers including Russia.
Brazil produces about 4% of global oil output, pumping some 4.3 million barrels of crude per day. In the past one to two years, crude oil has overtaken soybeans to become the country’s largest export item, accounting for 13.3% of total exports. The Brazilian government and energy consulting firms aim to raise production to around 5 million barrels per day by about 2030, with the goal of becoming the world’s fourth- or fifth-largest oil producer.

rainman@fnnews.com Kim Kyung-soo Reporter