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Asia: S Korea's SK plans to lift overseas upstream revenue by 28% in 2011

https://www.chemnet.com   May 10,2011 Platts
SK Innovation, South Korea's largest oil refiner, said Monday that revenue from overseas oil exploration and development activity was expected to surpass Won 1 trillion ($920 million) this year, up 27.7% from Won 783 billion in 2010.

The boost will largely be due to upstream activity in Colombia as well as plans to purchase crude-producing fields, the company said.

"We plan to expand exploration efforts in Latin America and elsewhere this year, and seek to purchase assets in oil fields overseas," a company official, who declined to be named, said Monday.

The company plans to begin exploration at the CPO-4 block in Colombia in the first half of this year. It also has stakes in two more blocks in Colombia -- CFE-5 and SSJN-5 -- where it soon expects to start exploration.

The company holds a 100% stake in the CPO-4 block in the Crudos Pesados basin. It also has a 50% stake in and is operator of the SSJN-5 block, with the remaining 50% stake held by Petropuli Corp. of Colombia. SK also owns a 28.6% stake in the CPE-5 block, together with mining major BHP Billiton (71.4%).

SK's revenue from overseas oil development projects reached Won 277.8 trillion in the first quarter of the year, up 64.5% from Won 168.9 billion a year ago. Average daily production in the quarter ended March increased to 63,000 b/d of oil equivalent, compared with 40,000 boe/d a year ago.

SK Innovation's first-quarter net profit almost tripled from a year earlier to Won 853.3 billion on stronger refining margins and higher prices of oil products. Q1 sales jumped 40% year on year to Won 17.08 trillion.

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