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South Korea joins consortium to meet energy demand

22nd March 2012

State-run companies in South Korea are looking further afield to secure the country’s growing energy demand.

Oil companies agree to buy exploration and production business for USD 7.15bn

A state-run South Korean oil company has teamed up with other global energy investors to buy US-based El Paso Corporation’s exploration-and-production business, EP Energy, from Kinder Morgan.

Korea National Oil Corporation (KNOC) joined a consortium with Ricerston Holdings and Access Industries to buy the energy business from the pipeline transportation and energy storage giant for USD 7.15bn. Shares agreed by the companies are expected to be announced in June.

The deal should help South Korea meet growing energy demands, said KNOC. EP Energy has assets throughout the US including fields in Egypt and the deep waters off Brazil.

In February, the consortium announced its intention to buy the business for USD 7.15bn, although KNOC’s participation was not revealed.

El Paso last year said it would run EP Energy as a separate public company from its pipeline business, and was acquired by Kinder Morgan for USD 21.1bn in November.