LG International to begin oil production in Oman in 2008
Posted: 04 December 2006
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LG International Corp. , the energy exploration and trading arm of South Korean conglomerate LG Group, said Monday it will likely start commercial production from an oil field in Oman as early as 2008.
LG International, which conducted test drilling in the West Bukha field between May and November this year, estimated it would turn out 12,000 barrels of oil and 22 million cubic-feet of natural gas daily.
"Test drilling has convinced us that commercial production may start as early as 2008," Hwang Sung-hye, an LG official, said. The company currently produces oil from the Bukha field located some 20 kilometers away from the West Bukha .
LG International purchased a 50 per cent stake in the West Bukha field in 1997, which Britain-based energy firm Indago Petroleum Ltd. has a 40 per cent stake and operational rights.
LG International has been exploring for oil and gas worldwide including Kazakhstan , Vietnam , Australia and East Timor .
Shares of LG International were trading at 21,500 won (US$23.1) as of 11:00 a.m. on the Seoul bourse.
Amid high-flying oil prices, South Korea 's companies have been stepping up efforts to develop oil and gas overseas in recent years. South Korea imports all of its oil and is the world's fourth-largest crude buyer. |
