KNOCÃ¢â‚¬â„¢s Global Expansion Strategy
In June 2008, Koreas state-owned Korea National Oil Corporation (KNOC) announced a global expansion strategy calling for a six-fold increase in oil and gas output and a five-fold increase in proven reserves by 2012. Korea, which depends almost entirely on foreign countries for oil supply, has been developing policies to encourage the development of overseas resources by Korean companies to enhance its energy security. KNOCs expansion is part of these efforts. Korean companies expansion into the upstream sector has featured a package-oriented approach in which they secure resources in foreign countries while supporting the development of energy infrastructure and social overhead capital required in these countries. As the national oil company, KNOC has played a leading role in this global expansion. Key features of KNOCs strategy include the acquisition of production assets rather than exploration assets, M&As of oil companies, the retention of engineers from the merged companies and the improvement of technological levels. If KNOC successfully implements its expansion strategy as planned, Koreas equity oil and gas production is expected to increase. However, a drop in crude oil prices has prompted other Asian national oil companies such as Chinese NOCs to aggressively go out for oil and gas assets. As the competition for securing energy resources intensifies, KNOCs future course remains to be seen, including how it would overcome the future challenges of post-merger integration.
|Date of creation:||Jan 2009|
|Contact details of provider:|| Postal: JG Crawford Building #13, Asia Pacific School of Economics and Government, Australian National University, ACT 0200|
Web page: http://www.eaber.org
More information through EDIRC
When requesting a correction, please mention this item's handle: RePEc:eab:energy:22958. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Shiro Armstrong)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.