KNOC to buy Harvest Energy Trust

Oct. 26, 2009
Korea National Oil Corp. plans to buy Harvest Energy Trust for $1.8 billion (Can.) plus the assumption of $2.3 billion in debt.

By OGJ editors
HOUSTON, Oct. 26
-- Korea National Oil Corp. plans to buy Harvest Energy Trust for $1.8 billion (Can.) plus the assumption of $2.3 billion in debt.

KNOC Pres. Young-won Kang said the acquisition fits into the company’s North American growth strategy.

“KNOC has ambitious plans for future growth and is committed to a long-term investment strategy in Canada,” he said.

Closing is expected before yearend. The transaction remains subject to regulatory approval along with the approval of a 66 2/3% of Harvest unitholders.

Harvest reported production of 52,745 boe/d as of Aug. 31, 2009, and reserves of 154.3 million boe as of Dec. 31, 2008. Harvest subsidiary North Atlantic Refining Ltd. owns the 115,000 b/cd Come by Change refinery in Newfoundland.