Koreans eye Alberta oil sands for secure supplies

Petroleum News Alaska Staff

Alberta’s oil sands are now showing up on the radar screen of Asian countries searching for stable, secure supplies of crude, with South Korea mounting a comprehensive examination the resource.

The Korean National Oil Corporation has sent a technical team to Alberta for a three-month fact-gathering mission. That will be followed by an oil sands technology and business seminar in Korea and a major visit by Korean energy companies to explore investment opportunities.

A spokesman for the Alberta Economic Development Department said KNOC has no interest in owning shares in an oil sands producer and will only consider a a working interest position.

“If KNOC finds an investment that is appropriate it will bring other companies from Korea to the table, likely in the form of a consortium,” he said.

The oil sands region, with an estimated 300 billion barrels of recoverable reserves, is anticipating about C$34 billion in capital spending over the next 15 to 20 years.

The spokesman said other Asian countries are also turning their attention to the oil sands as Japan Canada Oil Sands pushed ahead with a C$150 million project southwest of the oil sands capital at Fort McMurray. The Hangingstone project is aiming for 10,000 barrels per day by 2005.

JACOS is owned 66.9 percent by Japan National Oil, 6.2 percent by Japan Petroleum Exploration and 26.9 percent by 70 Japanese companies.