KNOC chasing overseas budget of $4 billion for 2012

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KNOC chasing overseas budget of $4 billion for 2012

Korea National Oil Corporation, a state energy developer, said it may spend as much as $4 billion next year on buying overseas oil assets to expand production.

“Next year could see a similar amount of investment to this year,” Im Hong-geun, executive vice president for Asia, Middle East and Commonwealth Independence States at the Anyang, Gyeonggi-based company, said yesterday.

The energy developer, known as KNOC, is currently discussing budgetary matters with the government, Im said.

“We need to boost our daily output to 300,000 barrels a day,” up from 215,000 barrels as of September, said Im, who was attending the Energy & Mineral Resources Development Symposium in Seoul.

Korean energy companies have bid for at least $4.3 billion of overseas assets this year, according to data compiled by Bloomberg. KNOC said in February it plans to invest as much as $4 billion in overseas oil fields this year.

The company will seek stakes in oil projects in the Middle East, Central Asia and Russia next year, according to Im.

“We may also participate in projects in deep-sea locations and remote areas,” he said. “We may approach these in the medium to long term. The cost of drilling an exploratory well in these areas may be $100 million to $150 million.”

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