Petroleum Corporation to Secure Up to $300 Million Liquidity Through North Sea Asset Sale

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Moon Chaeseok] Korea National Oil Corporation has secured up to $300 million in liquidity by selling part of its North Sea assets.

On the 6th (local time), the Oil Corporation announced that its subsidiary, UK-based Dana, signed a contract to sell 25% of its stake in the North Sea Tolmount project to UK Premier Oil.

The Tolmount project is a gas field development project in which Dana and Premier Oil each hold a 50% stake.

Located about 50 km east off the central coast of the UK, the Corporation has achieved successful results in consecutive explorations since acquiring Dana in 2011.

The estimated resource reserves of the Tolmount project are 89 million barrels, and production facilities are being constructed with the goal of starting production by the end of this year.

Upon completion of the sale, Dana's stake will decrease from 50% to 25%, and it is expected to receive up to $300 million, including a maximum sale price of $250 million and a settlement amount of $50 million for already invested costs.

Premier Oil, the current operator, is expected to secure additional shares in the project to enhance operational safety and efficiency.

Dana was able to secure liquidity necessary to improve the Corporation's financial structure by selling shares to a partner company that understands the proper value of the assets.

This share sale also signifies the first fruit of the Oil Corporation's self-help efforts aimed at business normalization.

So far, the Oil Corporation has formed an 'Emergency Management Task Force (TF)' to improve its financial structure, with the president directly serving as chairman, and has been implementing a rigorous emergency management plan.

An official from the Oil Corporation emphasized, "We will continue steady emergency management to strengthen financial soundness and invest part of the proceeds from this share sale into new high-quality assets to continuously ensure the stability of the national energy supply."

This content was produced with the assistance of AI translation services.