According to preliminary drilling results, officials from the energy ministry said that South Korea may not be able to afford a large oil and gas project near its east coast.

Officials told telephone that recent drilling had shown some gas potential, but the amount wasn't considered significant.

Yonhap News Agency reported earlier that a vice-minister told reporters the data from initial drilling held promise and could prove useful to guide further exploration.

Officials said that plans for future drilling had yet to be determined.

The project was announced by President Yoon Suk Yeol in June of last year. He approved exploratory drilling and said the area could contain up to 14 billion barrels or oil and gas.

The announcement raised hope that one day, enough gas would be available to power one of the largest energy importers in the world for 29 years.

Yoon, along with officials from the energy ministry at the time, said that the site was located off the industrial port city Pohang in the south-east of the country and within the Exclusive Economic Zone.

Since the announcement in June, sceptics and opposition parties have questioned the costs of exploring for deposits in a project where local media reported that government officials said the project had a success rate of 20%.

Yoon stated in June that each of up to five wells being considered could cost 100 billion won (69 million dollars).

In December, opposition parties that control the parliament slashed nearly all the budget allocated by the government for the project 2025.

Yoon was impeached and removed from power by the parliament in December for declaring martial law. This led to a constitutional crisis unprecedented.

(source: Reuters)