SK Corp. Looks to Oil
Exploration in North Sea

Takes over 30 to 40 % stakes in four mining blocks

SK Corp. participates in petroleum exploration projects in the North Sea of the United Kingdom. It is the first time that a Korean company has joined crude oil exploration projects in the European area.
Korea's largest oil refinery announced on June 12 that it had acquired 30 to 40 percent interests in four mining blocks - 9/2b, 3/27a, 9/11c, 8/25a - over which British oil developer Nautical Petroleum Plc has the rights to explore. Currently, the British company is conducting initial, basic probes.
SK Corp.'s participation is expected to accelerate the process of the projects so prospecting mining wells is likely to be conducted between 2007 and 2008.
Nautical Petroleum has a 45 percent interest; SK Corp., a 30 percent stake; and Nautical Petroleum's parent company, Swiss oil developer Masefield Energy Holdings, a 25 percent share in 9/2b and 3/27a, while Nautical Petroleum possesses a 60 percent stake and SK Corp. has a 40 percent interest in 9/11c and 8/25a.
SK Corp.'s participation in the North Sea exploration has brought to 22 in 12 countries the number of mining blocks where the Korean refinery is engaged in crude oil production, development and prospecting.
SK Corp. officials said they pin high hopes on the discovery of viable crude oil reserves.
The Korean refinery has so far conducted crude oil exploration projects in Africa, Southeast Asia, Latin America and Central Asia. As Bolivian and Venezuelan governments'measures to nationalize energy resources have sounded a warning over a supply of resources, SK Corp. is turning its exploration activities to the relatively safer European region.
SK Corp. officials said the Korean refinery is cutting down on its dependence on Latin America, fraught with political uncertainties, and chances are high that it can secure a stable supply of energy resources by diversifying exploration zones.
SK's presence in North Sea is expected to boost its recognition in the European area, industrial experts say.
Nautical Petroleum, an affiliate of Swiss oil company Masefield Energy Holdings, owns nine mining blocks around the North Sea.
Currently, SK Corp. has the rights to operate a mining block in the United States, while the Korean refinery owns stakes in exploration mining blocks being developed by such majors as Hunt Oil. nw

SK Corp. Chairman & CEO Chey Tae-won.

SK Corp.has acquired stakes in petroleum exploration projects in the North Sea as part of its efforts to diversify its energy resources exploration zones.