Korea National Oil to Slow Takeovers After Dana Acquisition

Korea National Oil Corp., a state-run energy resources developer, will slow purchases of overseas companies after completing the acquisition of Scotland’s Dana Petroleum Plc, Chief Executive Officer Kang Young Won said.

“We need to take a break for a while,” Kang told Bloomberg at an energy conference in Seoul today. Instead of purchasing companies, the company may be interested in buying overseas oil blocks, Kang said.

The company, known as KNOC, isn’t interested in acquiring Premier Oil Plc of the U.K. after considering the option, Kang said. Premier Oil was approached by KNOC, the Observer newspaper reported last month.

KNOC has nearly completed its hostile takeover of Dana for 1.87 billion pounds ($2.9 billion). KNOC bought a 50 percent stake in Petro-Tech Peruana SA of Peru for $450 million in February last year and paid $3.9 billion for Canada’s Harvest Energy Trust eight months later.

Korea National Oil’s daily output rose to 183,000 barrels after the acquisition of Dana, Kang said. The company said last year it aims to more than quadruple its daily crude oil output to 300,000 barrels by 2012 to meet the energy needs of Asia’s fourth-biggest economy.

“KNOC’s daily output will exceed 200,000 barrels” after Dana completes its own asset purchases, Kang said.

The Scottish explorer on Sept. 8 said it agreed to pay about 240 million pounds to Suncor Energy Inc. for Petro-Canada UK Ltd.’s production hubs in the North Sea.

To contact the reporter on this story: Shinhye Kang in Seoul at skang24@bloomberg.net

To contact the editor responsible for this story: Amit Prakash at aprakash1@bloomberg.net.

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