S. Korean company signs oil deal with Colombia

SEOUL, March 11 (Yonhap) -- A South Korean oil company has signed a deal with Colombia to explore three oil blocks in the South American nation, the Seoul government said Wednesday.

The agreement signed by the Seoul-based Golden Oil Corp. and the National
Hydrocarbons Agency in Bogota calls for the Korean energy developer to explore
the three blocks for six years. It may extract oil for a period for 24 years if
it discovers a deposit, the Ministry of Knowledge Economy said.
"Golden Oil has acquired a 100 percent stake in the blocks, including management
rights," said Hwang Soo-sung, head of the ministry's oil and gas development
division.
Hwang would not disclose how much was paid to secure the deal or the size of
future investment.
Golden Oil won the deal by participating in a open bid that was opened in June 2008.
The three blocks cover a total of 1,320-square kilometers and are all located in
the Maddalena and Llanos inland basins, which had produced a total of 5 billion
barrels of crude oil as of 2007.
Korea National Oil Corp. (KNOC) and SK Energy Co. are also engaged in the
exploration and development of six separate oil blocks in Colombia.
Colombia has the sixth-largest confirmed oil reserves in South America with daily
production reaching 560,000 barrels per day.
yonngong@yna.co.kr
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