KNOC aims to join top 60 oil, gas producers by 2012

SEOUL, March 2 (Yonhap) -- South Korea's state-run oil company said Monday it aims to become one of the 60 largest producers of fossil fuels in the world by 2012 by developing untapped resources and engaging in mergers and acquisitions (M&As).

The plan announced by the Korea National Oil Corp. (KNOC) on its 30th anniversary
calls for pushing daily crude production up to 300,000 barrels by the target
year, with total reserves of oil and gas under the company's control to reach 2
billion barrels.
The company now produces 77,000 barrels of crude per day and has an oil and gas
reserve totaling 630 million barrels. Of the total, only the equivalent of 9,000
barrels of gas and 1,200 barrels of oil are produced in the country daily.
"This should allow KNOC's ranking on the global scale to rise from 95th place to
the range of around 50th-60th place," a spokesperson said.
The ranking was estimated by the U.S. Petroleum Intelligence Weekly.
To increase production, the 100 percent state-controlled company said it will
compile a detailed blueprint for M&As and project financing by June, with
full-fledged efforts to acquire foreign companies and operational oil and gas
fields to begin in the second half.
In addition, the company said it will increase its marketing capabilities and
strive for technological independence in oil and gas exploration.
As part of this effort, the company last month bought a 50 percent stake in
Peru's Petro-Tech Peruana S.A. for US$450 million, outlining a plan to invest 500
billion won (US$316 million) in the next 10 years to develop the continental
shelf around the Korean Peninsula for oil and gas.