SEOUL, Mar. 21 (Korea Bizwire) — SK Innovation Co. said Wednesday that its wholly owned U.S. subsidiary, SK E&P America Inc., will buy a 100 percent stake in Longfellow Nemaha, a U.S. gas exploration firm, in the latest move to boost its shale gas exploration projects in North America.
SK E&P America said Tuesday that it has entered into a definitive agreement to “acquire all of the outstanding membership interests of Longfellow Nemaha” in a transaction set to close in the second quarter of 2018.
“SK initially invested in the growing U.S. oil & gas upstream market in 2014, and through this platform we continue to build a balanced portfolio of conventional and unconventional assets,” Kim Tae-won, President of SK E&P America said.
“This transaction leverages our operational expertise in the region and represents a significant step towards realizing SK’s vision of being a top-tier operator in the U.S. lower 48 states and beyond.”
The announcement came a day after SK Innovation said in a regulatory filing that it will invest 485.3 billion won (US$453 million) in SK E&P America for the acquisition of Longfellow Nemaha as well as oil exploration projects in the United States.
SK Innovation did not provide the value of its contract to buy Longfellow Nemaha as the deal is set to be completed by the end of June.