7 July 2011
South African state oil company PetroSA and the Korea National Oil Corporation (KNOC) have signed a memorandum of understanding to promote the exchange of commercial and technical information on hydrocarbon exploration and production in Africa.
The deal forms part of plans by PetroSA to create international partnerships that advance the objective of securing fuel supplies for South Africa.
“At PetroSA, we understand that to meet our mandate we need to establish partnerships with credible and well-established firms,” PetroSA acting CEO Nkosemntu Nika said in a statement this week. “These, we are convinced, will benefit PetroSA and the country in the long term.”
Exploring investment opportunities
Additional to the exchange of information, the two national oil companies will also explore investment opportunities in the oil and gas sector on the continent and in South Africa.
The two companies will also establish a working group to evaluate opportunities that may arise.
KNOC, a state-run South Korean oil company established in 1979, has to date carried out 210 projects in 25 countries.
“[The memorandum] with PetroSA will give KNOC a golden opportunity to advance into African regions,” said KNOC chief executive Kang Young-Won.
“I sincerely hope the cooperation between PetroSA and KNOC will bring about substantial business performance in the near future and also contribute to economic development of both countries.”
In June, PetroSA signed a memorandum with Italian energy firm Eni. This memorandum ensures that the two companies will evaluate the eventual acquisition by either party of participating interests in upstream projects for the development of both conventional and unconventional hydrocarbons.