KNOC to invest $6.5 billion in Canadian energy firms: report
27 Jan 2010
Following China's footsteps, South Korea's state-owned oil and gas company Korea National Oil Corp (KNOC) is setting its sights on countries having energy resources to acquire or take majority stakes while the valuations are low owing to economic downturn.
Media reports quote KNOC officials as saying that the company will spend $6.5 billion on mergers and acquisitions in 2010 in an effort to cut South Korea's almost total dependence on imported oil.
According to a report by UBS, KNOC may be eyeing Canadian companies such as Suncor Energy, independent petroleum producer EnCana Corp., and independent oil explorer Talisman Energy.
In addition, Canadian oil sands company Opti Canada and its peer Nexen Inc are seen as potential acquisition targets.
According to investment bankers Canada is very friendly to acquisitions by foreign investors, supported by the welcoming policy of the Canadian government.
Last week, the provincial government of Ontario signed a historic C$7 billion deal with a Korean consortium led by Samsung C&T Corporation and Korea Electric Power Corporation to generate 2,500 megawatts (MW) of clean energy using wind and solar power (See: Canada signs C$7 billion clean energy deal with Korean consortium).
