State-run Korea National Oil Corp (KNOC) has scaled again efforts to tug out of the British North Sea, specializing in the sale of its stake within the Tolmount fuel venture, three business sources mentioned.
Heavily indebted KNOC earlier this yr tried to promote a 49% stake in its North Sea subsidiary Dana Petroleum however couldn’t discover a appropriate purchaser, the sources mentioned.
In March, KNOC mentioned it was focusing on a discount in its debt-to-equity ratio to 1,200% in 2019 and 500% in 2020.
KNOC is now trying to promote its 50% stake in Tolmount, which is operated by Premier Oil, the sources mentioned.
Premier Oil and KNOC each declined to remark, whereas Dana Petroleum didn’t instantly reply to a request for remark.
Premier estimates the Greater Tolmount Area to include round 1 trillion cubic ft of fuel. Dana has mentioned its share would produce round 28,000 barrels of oil equal a day at peak manufacturing.
Earlier this month, Premier introduced that its drilling within the Tolmount East part, focusing on an extra 220 billion cubic ft of fuel, was profitable.
KNOC purchased Aberdeen-based Dana, an exploration and manufacturing firm with operations throughout the North Sea, the Netherlands and Egypt, in 2010 for $2.9 billion, together with debt. KNOC had employed Canada's Scotia Bank to market the company stake.
With common 2018 manufacturing of 65,000 barrels of oil and fuel per day and income of $1.27 billion, Dana Petroleum has 70% of its operations within the North Sea. Earlier this yr it was fined for releasing greater than 80 tonnes of chemical compounds onto the seabed throughout a drilling operation in 2016.
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