South Korean firm in talks with Scotland-based oil explorer

2nd July 2010, Comments 0 comments

KNOC, South Korea's state-run oil company, said Friday it had contacted Scotland-based oil and gas exploration and development company Dana Petroleum PLC as it hunts for foreign energy assets.

"We have contacted Dana as part of our hunt for foreign companies, but there was no exchange of words on concrete terms," a Korea National Oil Corp spokesman told AFP.

The Financial Times reported that KNOC was exploring a 2.2 billion dollar takeover offer for Dana Petroleum, which has proved and probable reserves of 233 million barrels of oil equivalent and production from 36 fields in Britain's North Sea, Egypt and in Africa.

South Korea is the world's fifth largest crude importer and currently has no proven oil reserves.

The state firm has expanded overseas production or purchased foreign firms to secure more overseas sources.

It aims to raise its self-sufficiency in oil and gas to 8.1 percent of total domestic demand from the current 6.3 percent.

© 2010 AFP

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