SK Innovation said its oil business subsidiary SK Energy and SK Trading International signed a deal on July 18 to acquire shares of Best Oil Company (BOC), the Myanmar's second-largest oil distribution group.
BOC has a 100 percent subsidiary, PT Power in charge of oil imports and distribution in southern Myanmar, and PSW, which builds and operates oil product import terminals. BOC has a 17 percent share of the Myanmar's oil market. SK has a 35 percent stake in the deal, with about 150 billion won in investment.
About 500 people attended the signing ceremony at the Yangon Lotte Hotel in Myanmar, including SK Energy CEO Cho Kyung-mok, SK Trading International CEO Suh Suk-won, BOC Chairman Aung Shwe and BOC CEO Win Swe.
"This is a strategic investment to secure stable export and trading markets and to create growth opportunities by entering overseas retail markets," said SK Trading International CEO Suh.
SK Energy and SK Trading International have been paying attention to the Southeast Asian oil market, which has recently been exploding, and seeking various investment opportunities.
By successfully investing in Myanmar after securing a 5.23 percent stake in Vietnam's PV Oil last year, SK Energy's strategy to preemptively enter the high-growth market is bearing fruit.
