Trump says US deal with South Korea has $8.4 billion for oil recovery

By Timothy Gardner and Katharine Jackson

WASHINGTON, Oct 2 (Reuters) – President Donald Trump said on Friday that a US trade deal with South Korea includes $8.4 billion for a project to push out crude from an aging oilfield, although South Korea’s state-supported Yonhap news agency reported that an official from Seoul’s industry ministry was surprised by the claim.

“The Republic of Korea Deal keeps getting BETTER! 8.4 Billion Dollars for an enhanced Oil Recovery Project. Producing more Oil and Gas means American Energy Dominance and Energy Security in the World for the Future!” Trump wrote on Truth Social.  

The South Korean official said the enhanced oil recovery project was not part of the deal, according to the report from Yonhap. The official said the agreement is limited to what was in a joint fact sheet that Seoul and Washington released in November 2025. Press officials at the South Korea embassy in Washington could not be immediately reached for comment. 

The White House did not immediately respond to a request for comment.

The technology, known as EOR, which often pumps the greenhouse gas carbon dioxide into oilfields to squeeze out remaining crude, is backed by large oil companies but is opposed by many environmental groups that say it is not a climate solution as it can prolong dependence on petroleum.

The announcement is the latest in a series of economic and investment deals Trump is highlighting ahead of November’s midterm elections, as he seeks to reinforce his economic record amid voter concerns over the Iran war and high gasoline prices.

Trump unveiled plans on Wednesday for South Korea to invest $200 billion in US projects, but Seoul quickly suggested one key element, a $54 billion pipeline for an LNG project in Alaska, was not yet set in stone.

Trump said the investment would include the construction of eight large-scale nuclear power plants, a natural gas pipeline and a 6-gigawatt power generation facility in Texas.

The announcement amounted to the first set of major projects under a broader $350 billion strategic investment package South Korea made as part of a trade agreement with Washington last year. The package included $150 billion for shipbuilding.

The pipeline project could carry political significance in Alaska, where Republican Senator Dan Sullivan faces a competitive reelection race against Democrat Mary Peltola. 

South Korea’s government, however, said the project would only go forward if certain commercial and legal conditions are met. The Alaska LNG project will be reviewed to assess its viability and compliance with legal procedures, Seoul’s industry ministry said.

(Reporting by Katharine Jackson and Timothy Gardner, editing by Michelle Nichols, Emelia Sithole-Matarise and Nia Williams)