Single-handed Oil
Exploration
- SK takes over 100 pct right to U.S. oil field at undisclosed price

SK Corp. has acquired the operational rights to an oil field in the United States in an apparent move to directly engage in the exploration of oil departing from its past practice of holding stakes in oil fields only, company officials said March 30.
SK Corp. secured 87.5 percent stakes in Iberia North oil exploration block in south Louisiana through its U.S. subsidiary SK E&P last month, they said, not disclosing the price. But its been reported that the company allocated more than $10 million for the operation of the new project.
President of SK Corp. Shin Hun-chul said the company will start the exploration project this year as various ways are being employed to secure the exploration right for the oil field including the acquisition of stakes. It's the first direct take over of an oil field in a foreign country by SK in 10 years since its failure to find oil in an oil field in Myanmar in 1995.
The company lost $70 million in the failed venture, and desisted from taking 100 percent ownership of an oil field since then, taking over from 10 to 20 percent stakes instead. Now, the company has changed its strategy and decided to not only take over exclusive rights, but also take over oil fields it holds stakes. It would cost a lot of money to buy additional stakes in the existing oil fields, but the risk is minimal since oil has already been found in those fields, SK officials said.
The company plans to plunk down 162.8 billion won in the development of oil fields overseas this year and the company projects some 1.5 trillion won will be invested in overseas oil exploration projects until 2010 to produce 100,000 barrels of crude oil per day in those overseas oil fields.
Last year, SK Group recorded $13.1 billion in exports, up 30 percent from the previous year and the group's export performance appears to continue to register growth this year, too, with its exports rising 30 percent in the first quarter.
The enviable record is owed to the success of its energy and chemical exports to China and Group Chairman Chey Tae-won's global tour to cheer up the performance of overseas affiliates of SK Group affiliates.
The group's 7 affiliates including SK Corp. and SK Network recorded $3.1 billion in exports during the first quarter, up 30 percent from the same period last year, showing that the group's export performance is about to reach a full swing.
Exports of information and communication terminals began to hit the stride and they are expected to grow in the second half of the year, which will be a big help for group's overall export target of $14 billion for the year.
The group, as part of its aim to become a leading energy concern in Asia, acquired stakes in a large logistics terminal in Singapore, a center of oil trade in Asia, in January with hopes that it would be a big boost to the group's exports to Asian countries.
In a move to encourage the growth of group's activities in China, a number of group's key affiliates led by Shin Hun-chul, president of SK Corp. and Kim Shin-bae, president of SK Telecom, toured their operations in China during the first quarter.
SK Corp. set up its affiliate in China in October last year aimed at expanding exports of oil, chemical, lubrication oil and asphalt to China with the hope of boosting total sales to 5 trillion won by 2010 through expanded sales and distribution network.
In the first quarter alone, SK Network signed an agreement with a Chinese automotive service firm to jointly set up a car maintenance service company, Speedmate, while SKC agreed with a Chinese petrochemical firm to start a polyurethane production company in China.
Group Chairman Chey is scheduled to travel to a number of countries including the U.S., and Singapore, for rounds of investor relations activities in those countries, and also visit the group's overseas operation units. He also is to fly to Turkey to discuss matters related to information communication business and natural resources exploration. nw