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<DIV id=articleTitle class=actit>KNOC gets green light to buy 34% Dana stake</DIV></TD></TR></TBODY></TABLE></DIV>
<DIV align=right>September 25, 2010</DIV></TD></TR>
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<TD style="PADDING-BOTTOM: 20px; LINE-HEIGHT: 23px; PADDING-LEFT: 0px; PADDING-RIGHT: 0px; FONT-SIZE: 16px; PADDING-TOP: 0px" id=articleBody class=actxt>The Korea National Oil Corporation, the state-owned energy explorer, is closer to acquiring a majority stake in London-based Dana Petroleum PLC. The acquisition, if completed, will increase Korea’s independent oil production rate to the double-digits for the first time.<BR><BR>According to the KNOC yesterday, it received acceptance from Dana shareholders through the London Stock Exchange to purchase 34.76 percent of its stocks in addition to the 29.5 percent stake it acquired last Friday. <BR><BR>Altogether, Korea’s oil provider would be equipped with 64.26 percent of Dana’s shares.<BR><BR>“The 34.76 percent stake from shareholders will be purchased before Oct. 7,” the KNOC said in a release.<BR><BR>KNOC’s interest in acquiring Dana Petroleum dates back to Aug. 20 when it expressed interest in a bid to increase its independent production of oil. Currently, the state-run oil provider’s independent oil production rate stands at 9 percent. <BR><BR>Nearly 97 percent of the country’s energy needs depend on imports.<BR><BR>Initially, the KNOC had aimed to acquire 90 percent of Dana’s shares, though it has withdrawn the plan.<BR><BR>“We will keep persuading those shareholders who have not accepted our offer to sell their stakes to us and delay the due date for acceptance until further notice,” said a KNOC official. “Should we get to acquire more than 75 percent of Dana’s shares, we are planning on delisting the British company, which will help liquidate non-accepted shares.”<BR><BR>If successful, the 100 percent takeover will be one of the KNOC’s largest acquisitions, costing up to $2.8 billion - at 18 pounds or $28.18 per share. Over recent years, the KNOC also acquired Canada’s Harvest Energy for $ 3.9 billion and Savia Peru, former Petro Tech, for $450 million. <BR><BR>“The acquisition will allow us to promote and explore overseas oil development projects, not only in the United States and Russia but also in the North Sea and Africa, which are regions Dana Petroleum focuses,” the official said.<BR><BR><BR>By Lee Eun-joo [angie@joongang.co.kr]<BR></TD></TR></TBODY></TABLE></P>
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