Talks Underway with Preferred Bidder
The Korea National Oil Corp. (KNOC) is in the process of selling its ADA mine lot in Kazakhstan for the purpose of asset-liability adjustment. At present, talks between the corporation and a preferred bidder are underway to be wrapped up by October.
The mine lot is located in Aktobe, which is in the west of Kazakhstan. The corporation acquired 22.5 percent of the lot in late 2005 and the ownership percentage was raised to 40 percent in 2009. The other investors include LX International.
According to the Financial Supervisory Service, the corporation’s total assets and liabilities were 18.4 trillion won and 20 trillion won at the end of 2021, respectively. The sale is to address this capital impairment. In addition, the daily output of the lot was 3,927 barrels in 2014 but dropped to 2,646 barrels in 2021.
At present, additional drilling and reservoir expansion are impossible in the lot because the government of Kazakhstan is strengthening its environmental protection policies.