South Korea to buy Alberta oil sands field

Eric Watkins
Senior Correspondent

LOS ANGELES, July 24 -- South Korea has signed an agreement to buy a 100% stake in the Blackgold Mine oil sands field in the Cold Lake region of Alberta.

Hwang Doo-yul, chief executive officer of state-run Korea National Oil Corp. (KNOC), signed the deal with Geoff Waterman, vice-president of Newmont Mining of Canada, an affiliate of US-based Newmont Mining Corp.

KNOC is expected to begin production in 2008, with full-scale operations to start in 2010. KNOC reportedly paid $270 million for the mining rights and it expects sales to reach $500 million once full-scale production commences.

South Korea's Ministry of Commerce, Industry, and Energy said 30,000-35,000 b/d could be extracted from the field over the next 25 years. It said South Korea currently produces 115,000 b/d of oil from domestic and overseas oil fields.

The ministry said the country's oil output self-sufficiency level could be raised by around 1.2% once production begins. The South Korean government wants to raise the country's self-sufficiency level to 18% from the current 4% by 2013.

Contact Eric Watkins at hippalus@yahoo.com.

Related Articles

ExxonMobil replaces 103% of 2013 production

02/21/2014 ExxonMobil Corp. replaced 103% of its oil and natural gas production last year with additions to reserves, mostly of crude oil and other liquids.

Hydraulic fracturing stuck in New York policy vacuum

02/01/2014 Persistent institutional indecisiveness by elected officials in New York State has placed the state in the position of not having a statewide polic...

Contact hails Kakwa Montney tight gas-liquids well results

10/16/2013 Contact Exploration Inc., Calgary, said completion of its fourth operated horizontal Middle Montney formation tight gas-liquids well extends the sc...

Watching Government: BC Premier's energy stance

10/14/2013 British Columbia will not budge on its requirements proposed heavy oil export projects must meet, Premier Christy Clark said on Oct. 4. But that do...

Careers at TOTAL

Careers at TOTAL - Videos

More than 600 job openings are now online, watch videos and learn more!

 

Click Here to Watch

Other Oil & Gas Industry Jobs

Search More Job Listings >>
Stay Connected