State-run Korea National Oil Corp. (KNOC) has scaled back efforts to pull out of the British North Sea, focusing on the sale of its stake in the Tolmount gas project, three industry sources said.
Heavily indebted KNOC earlier this year tried to sell a 49% stake in its North Sea subsidiary Dana Petroleum but could not find a suitable buyer, the sources said.
In March, KNOC said it was targeting a reduction in its debt-to-equity ratio to 1,200% in 2019 and 500% in 2020.
KNOC is now looking to sell its 50% stake in Tolmount, which is operated by Premier Oil, the sources said.
Premier estimates the Greater Tolmount Area to contain about 1 trillion cubic feet of gas. Dana has said its share would produce around 28,000 barrels of oil equivalent a day at peak production.
Earlier this month, Premier announced that its drilling in the Tolmount East section, targeting a further 220 billion cubic feet of gas, was successful.
KNOC bought Aberdeen-based Dana, an E&P company with operations across the North Sea, the Netherlands and Egypt, in 2010 for $2.9 billion, including debt.
With average 2018 production of 65,000 barrels of oil and gas per day and revenue of $1.27 billion, Dana Petroleum has 70% of its operations in the North Sea. Earlier this year it was fined for releasing over 80 tonnes of chemicals onto the seabed during a drilling operation in 2016.
KNOC had hired Canada’s Scotia Bank to market the corporate stake.
Premier Oil declined to comment. KNOC and Dana Petroleum did not immediately reply to a request for comment.
Recommended Reading
U.S. Shale-catters to IPO Australian Shale Explorer on NYSE
2024-05-04 - Tamboran Resources Corp. is majority owned by Permian wildcatter Bryan Sheffield and chaired by Haynesville and Eagle Ford discovery co-leader Dick Stoneburner.
Earthstone’s Anderson Relaunches, Seeks Conventional
2024-05-24 - The new E&P PetroPeak Energy will also take a look at unconventional property in the Eagle Ford and Austin Chalk.
Crestwood’s Wannarka Joins EnergyNet as CFO, COO
2024-06-18 - Wannarka brings public-equity finance, investment banking and investor relations experience to the upstream A&D brokerage.
Equitrans Midstream Announces Quarterly Dividends
2024-04-23 - Equitrans' dividends will be paid on May 15 to all applicable ETRN shareholders of record at the close of business on May 7.
PrairieSky Adds $6.4MM in Mannville Royalty Interests, Reduces Debt
2024-04-23 - PrairieSky Royalty said the acquisition was funded with excess earnings from the CA$83 million (US$60.75 million) generated from operations.