By Shadia Nasralla and Ron Bousso
LONDON, Oct 23 (Reuters) - State-run Korea National Oil Corp
(KNOC) has scaled back efforts to pull out of the British North
Sea, focusing on the sale of its stake in the Tolmount gas
project, three industry sources said.
Heavily indebted KNOC earlier this year tried to sell a 49%
stake in its North Sea subsidiary Dana Petroleum but could not
find a suitable buyer, the sources said.
In March, KNOC said it was targeting a reduction in its
debt-to-equity ratio to 1,200% in 2019 and 500% in 2020.
KNOC is now looking to sell its 50% stake in Tolmount, which
is operated by Premier Oil, the sources said.
Premier estimates the Greater Tolmount Area to contain
around 1 trillion cubic feet of gas. Dana has said its share
would produce around 28,000 barrels of oil equivalent a day at
peak production.
Earlier this month, Premier announced that its drilling in
the Tolmount East section, targeting a further 220 billion cubic
feet of gas, was successful.
KNOC bought Aberdeen-based Dana, an exploration and
production company with operations across the North Sea, the
Netherlands and Egypt, in 2010 for $2.9 billion, including debt.
With average 2018 production of 65,000 barrels of oil and
gas per day and revenue of $1.27 billion, Dana Petroleum has 70%
of its operations in the North Sea. Earlier this year it was
fined for releasing over 80 tonnes of chemicals onto the seabed
during a drilling operation in 2016.
KNOC had hired Canada's Scotia Bank to market the corporate
stake.
Premier Oil declined to comment. KNOC and Dana Petroleum did
not immediately reply to a request for comment.
(Additional reporting by Jane Chung in Seoul; editing by David
Evans)
