Korea said that 35 major firms are expected to spend $7.8 billion on overseas oil and gas reserves this year, surging 29 percent from 2010 and contributing to 38 percent of average annual growth since 2008.
Of the total, two state-run entities, Korea National Oil Corp (KNOC) [KOILC.UL] and Korea Gas Corp (KOGAS) (036460.KS), are projected to invest a combined of $6.55 billion in 2011, up 21 percent from a year ago, the ministry of knowledge economy said in a statement.
The investments would be spent for KNOC to acquire new assets and for KOGAS to develop oil and gas reserves in Iraq, it added. "This years investment by KOGAS is particularly seen to surge according to our survey," a ministry official said, with declining to break down individual investment figure of the energy firms.
Of the total investment, 27 percent would be spent on North America, while 15 percent and 12 percent would be spent each to the Middle East and Southeast Asia, the ministry statement said. "Firm will also focus to enter promising frontiers such as the Middle East and the Arctic, the most strategic areas for resource development." The statement added South Korean firms would increase their investments in developing technology for non-traditional energy resources, with their investment experience in oil sands and shale gas.
TO FOCUS ON MIDDLE EAST, ARCTIC
The worlds No.5 crude oil buyer and No.2 liquefied natural gas (LNG) importer wants its energy companies to supply 30 percent of the country's combined oil and gas imports from projects almost all abroad by 2019, up from 9 percent in 2009, as it looks to increase self-sufficiency. [ID:nTOE6BL020]
South Korea also said last month it would seek to raise self-sufficiency rates for oil and gas to 13 percent in 2011, up from 10 percent in 2010, while doubling those rates for new strategic minerals such as rare earths and lithium, to 10 percent in 2011 from 5.5 percent in 2010.
source: APEC-VC Korea
