SK Energy wins bid to develop Peruvian offshore oil field

SK Energy, South Korea's largest oil refiner, said Sunday it has won a bid to develop an oil field in Peru's offshore Trujillo basin.

The company, formerly SK Corp., said in a release that it won the right to develop 100 percent of the field, known as Peru Offshore Block Z-46, in bidding sponsored by Peru's oil licensing company Perupetro.

"Considering its proximity to major oil production sites in Peru, and a number of discoveries in the region, Block Z-46 looks very promising,'' SK Energy President and CEO Shin Heon-cheol, said in the statement.

SK Energy said that including the latest field, it is active in 26 blocks in 14 countries, including Egypt, the Ivory Coast, Russia, Brazil, Madagascar and Britain. SK Energy plans to invest 544 billion won (US$596 million; euro431 million) in its global exploration and production business this year.

The company said it expects its proven reserves to total 700 million barrels by 2010.

Industrially advanced but resource-poor South Korea imports almost all its oil.

Perupetro had said in May that some 37 companies had expressed interest in bidding for the rights to 19 oil and gas fields, encouraged by the South American country's political stability and high international oil prices.

Daniel Saba, president of Perupetro, said at the time that most of the companies were from the United States, Canada and Asia, but refused to name them. The auction opened in January and companies had until July 12 to bid.

In February, Indian leaders and activists criticized Peru's decision to open up oil exploration in the Peruvian jungle - where some of the fields are located - saying doing so would pose health and environmental risks to isolated area communities.

AP