UPDATE 1-S.Korea's KNOC says eyeing sale of parts of Canadian unit Harvest

Tue Sep 24, 2013 4:37am EDT
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* A few buyers showed interest in some assets of Harvest

* KNOC re-evaluating overseas assets including UK-based Dana

* Could sell parts of overseas assets to reinforce business

By Meeyoung Cho

SEOUL, Sept 24 (Reuters) - State-run Korea National Oil Corporation (KNOC) said it is considering selling 'non-core parts' of its loss-making Canadian energy subsidiary Harvest Operations and reviewing other overseas assets for potential sale of some of their parts.

The plans come after South Korea initiated a review of its overseas investments in oil and gas due to poor profitability, particularly those made in the last five years.

Asia's fourth-largest economy is heavily dependent on energy imports and rapidly expanded overseas investments to develop oil and gas reserves between 2008 and 2012, as it grappled with inflation driven by costlier imports.

But a new government starting this February has said it is focused more on quality than quantity of its energy investments.

South Korean media, citing KNOC chief executive Suh Moon-kyu as telling reporters, had said earlier in September that KNOC plans to sell Harvest Operations.   Continued...