S Korean oil company acquires Kazakh energy firm

SEOUL, Dec. 29 (Xinhua) -- The South Korean government announced Tuesday its state-run oil company Korea National Oil Corp. (KNOC) has bought a Kazakh energy firm capable of producing 20,000 barrels of crude oil per day by 2014.

The Ministry of Knowledge Economy said in a press release the KNOC has acquired Sumbe AO for 335 million U.S. dollars Monday and is pending final approval from the Kazakh government.

Following the acquisition, KNOC now owns 85 percent of Sumbe's total shares with the remaining 15 percent going to its Kazakh partner.

The Kazakh energy firm operates two oil fields in Arystan and Kulzhan that could potentially produce 10,000 barrels of crude oil per day by 2012 and reach 20,000 barrels per day by 2014, the release said.

The Arystan field has an area of 623 sq. km currently producing oil and has a confirmed reserve of 57.8 million barrels that is expected to surpass 140 million barrels.

The Kulzhan field, covering 34 sq. km, is currently under exploration by the KNOC who anticipates discovering 32.5 million barrels of crude oil in the area.

The release also said the oil firm expects to recover its investment in 5.3 years as Sumbe's advanced industrial infrastructure in railroads and pipelines combined with the KNOC's human resource and experience in the region will generate cost-effective, synergy impacts.