South Korea’s state-funded oil producer plans to develop a new gas field in the East Sea.

According to the industry and the government sources on Wednesday, the Korea National Oil Corporation(KNOC) will begin commercial production on Donghae-2 gas field beginning in October.

South Korea has produced natural gas and oil since 2004 through Donghae-1 gas field, which produces a daily average of one-thousand-100 tons of natural gas and one-thousand barrels of light crude oil, but will be depleted by the end of next year.

The envisioned Donghae-2 gas field is five-point-four kilometers away from Donghae-1 and located 60 kilometers off the east coastal city of Ulsan and is estimated to have the reserves of around 566 million cubic meter of natural gas and 180-thousand barrels of light crude oil.

A government official said although Donghae-2 was discovered together with Donghae-1, its development had been postponed due to its small economic feasibility.

The official said the KNOC will utilize the production platform of Donghae-1 in developing the Donghae-2 gas field.