Woodside invests $20 mln for S.Korea sea exploration

SEOUL, May 25 (Reuters) - Australia's Woodside Petroleum Ltd (WPL.AX) will invest up to $20 million to explore South Korea's continental shelf in the East Sea for oil and gas reserves, Seoul's energy ministry said on Sunday.

Woodside Petroleum and state-run Korea National Oil Corp (KNOC) will begin the exploration on two prospective deep-sea offshore blocks from this month until July, the Ministry of Knowledge and Economy which oversees energy investments said in a statement.

Costs beyond the $20 million will be divided between the two firms.

After reviewing the blocks' feasibility until May 2009, Woodside Petroleum and KNOC will decide whether to start the drilling process in the following month, the ministry said.

South Korea has been producing about 1,000 tonnes of natural gas per day on average at a gas field in the East Sea since 2004. (Reporting by Angela Moon; Editing by Jacqueline Wong)