LGI Expands Chile Oil Development Business
■ USD 96 million will be invested to increase a stake in existing oil blocks and to secure new oil blocks.
- USD 78 million will be invested to acquire an additional 10% interest in one producing block and
two exploration blocks.
- USD 18 million will be invested to secure three new blocks under exploration and development stage.
■ Chilean Upstream Business will become center of developing natural resources in Central and South America.
LG International is set to invest a total of USD 96 million in Chile to expand its exploration and production business drastically.
LGI acquired an additional 10% interest in Chilean business, owned by Argentine based exploration and production company Geopark, for USD 78 million, increasing its total interest to 20%.
LGI acquired an initial 10% interest in Geopark’s Chilean business for USD 70 million in May 2011, the first oil and gas investment by a Korean company. Geopark has one producing block and two exploration blocks in Chile.
The Fell block, which began production in 2006, is currently producing 9,000 barrels of oil and gas per day, and is gradually increasing its production. The Tranquilo block and Otway block are now actively being explored.
In addition, LGI has decided to invest USD 18 million to secure three new exploration and development blocks together with Geopark. LGI will secure six oil blocks to cement its firm foundation in Chile.
An LGI official said, “We have acquired additional interest for untapped opportunities and high potential in this region; through continued exploration and development we believe the value of the business would increase. And based on the Chilean upstream platform, we will continue to develop natural resources in Latin America.”
LGI and Geopark entered into a strategic partnership agreement in March 2010 and have been strengthening cooperation. Geopark is currently engaged in six oil & gas blocks in Chile and Argentina. They are a promising exploration & production company with technology and expertise.
Since June 2010, LGI participated in a project to explore lithium in Sal de Vida, Argentina. And it continues to develop natural resources in Central and South America, the world’s repository of natural resources.
<Chile Oil Block Map>
<LGI’s Oil & Gas Assets>
||Bukha / West Bukha in Oman
|LNG in Qatar
|11-2 in Vietnam
|Fell in Chile
||NW Konys in Kazakhstan
||Scheduled for test production this year|
||Block 8 in Kazakhstan
|Zhambyl in Kazakhstan
|Tranquilo in Chile
|Otway in Chile