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Overseas travel: for the Korean group of 13

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Korean players eye Canadian opportunities

State-run Korea National Oil Corporation (KNOC) said today it had signed an initial agreement with 13 other South Korean companies to jointly develop blocks in Canada's oil sands.

The companies will also seek opportunities to secure other downstream projects such as building oil refining facilities and pipelines, and will look into taking over small energy companies in Canada, KNOC said.

"We need to co-operate with other [South Korean] companies to share funds, technology and information to compete with other global rivals in developing energy sources," KNOC was quoted as saying by Dow Jones.

The group aims to secure oil sand fields that can produce as much as a combined 100,000 barrels of oil per day by 2015.

South Korea is seeking to diversify its energy sources and bolster its energy security by tapping into resources that it owns or intends to acquire overseas.

The country aims to raise its oil output self-sufficiency level to 18% in 2013 from 4.1% in 2006.

The 13 companies include Korea Electric Power Corporation, Posco, GS Caltex Corp, Hyundai Engineering & Construction and Daewoo International Corporation.

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