The new owner of Aberdeen-based Dana Petroleum is seeking to expand, it emerged yesterday.
State-run Korea National Oil Corp (KNOC) is not targeting UK-listed operator Premier Oil, however.
KNOC plans to spend between £1.26billion and £1.89billion to add a further 100,000 barrels per day (bpd) of production capacity by 2012, and is looking at about five or six oil assets.
KNOC recently completed a £1.67billion deal for Dana – its biggest acquisition.
Senior executive vice-president Kim Seong-hoone said: “There’s no shortage of investment targets and we are receiving about 20 to 30 acquisition proposals from investment banks every month.
“We’ve narrowed them down to five or six and are focusing on assets with high upside potential and little investment risk.”
Shares of Premier hit a year-high last month after a report it had received a bid approach from KNOC.
Mr Kim said: “We are no longer looking at corporate acquisitions. Recent acquisitions have brought us a skilful workforce and sufficient technology to look at asset-based acquisitions.”
He said the company was on track to achieve 300,000bpd by 2012 and planned to lift the target to 500,000bpd by 2018 and to 1million bpd by 2030, raising South Korea’s oil self-sufficiency to 40% from 10% now. Following the acquisition of Dana, KNOC’s production had risen to 185,000bpd and was expected to reach 200,000bpd in January or February.
The South Korean government has given KNOC a £4.1billion war chest this year to compete with other energy-hungry Asian state companies, racing to secure supplies and reduce the dependence of Asia’s fourth- largest economy on imported oil.
The acquisition of Dana also helped KNOC to address the perception that it was a timid buyer, after its failure to conclude other deals in recent years.
Firms from China and elsewhere have so far outgunned KNOC, which is involved in oil exploration and storage, in bigger deals.
The vice-president said: “We are not in direct competition with China for acquisitions.
“There are more than enough targets and we are looking at assets in exploration and development, including oil fields and shale.”
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