GS Holdings farms in Indonesian exploration blocks

South Korea's GS Holdings Corp. said on Thursday it would acquire interest in three Indonesian oil exploration blocks for US$14.2 million from state-run Korea National Oil Corp. (KNOC), agency reported.

South Korea's No. 2 oil refiner GS-Caltex Corp., formerly LG-Caltex Oil Corp., and other former LG Group retail affiliates were regrouped under GS Holdings last year as part of a shake up of the conglomerate's corporate structure.

GS Holdings would buy 5 percent and 30 percent interest stakes respectively in Indonesia's Nem I and Nem II oil blocks, East Java and a 20 percent stake in Papua province, the company said in a statement.

The investment plans were subject to final approval from the Indonesian government, it added.

The purchases would reduce KNOC's holdings in the Nem I block to 45 percent, cut it to 50 percent in the Nem II block and 80 percent in the Wokam block, GS said.

South Korea's biggest oil refiner, SK Corp., and Vietnam's state oil firm Petrovietnam hold the remaining stakes in the Nem I and II blocks, it added.

Exploration work at the Nem I and II blocks, which began in October 2003, would continue until September 2009, it said. The contract for the Wokam project began in December 1997 and would last until November this year. (*)