South Korea spends US$4 billion on overseas oil fields

South Korean companies spent a record US$4.02 billion last year to develop overseas oil and gas fields in an effort to better insulate the country from sudden surges in global energy prices, the government said Monday.

The increase marks a 57.6 per cent on-year gain and helps push up the country’s self-sufficiency in oil and gas to 5.72 per cent of total demand from the 4.2 per cent level reached the previous year, the Ministry of Knowledge Economy said. The country’s demand for oil and gas reached 3 million barrels per day last year.
Oil and gas fields controlled by South Korean companies produced 172,200 barrels of oil per day in 2008, up 37 per cent from the year before, according to the ministry, which is in charge of the country’s industrial and energy policy.

In 2007, fields controlled by South Korean companies, including Korea National Oil Corp. (KNOC) and SK Energy Co., reached 125,000 barrels per day.

The ministry said that in 2008, local companies engaged in 35 new development projects, bringing the overall total to 155 in 36 countries. Of these, South Korean companies have secured management control of 67 operations, which will provide valuable experience in the management of energy production.

Energy Current