KNOC set to sell dollar-denominated bonds

By Nam Kwang-sik
SEOUL, June 15 (Yonhap) -- Korea National Oil Corp. (KNOC), South Korea's
state-run oil developer, has selected banks to manage a dollar-denominated bond
sale, a company official said Monday, amid speculation on its move to acquire a
Swiss oil and gas producer.

"We have picked up managers (for the dollar-denominated bond sale) to raise
additional funds, but no details on the transaction have been decided yet," said
the company official who declined to be identified.
In late May, KNOC said that it has raised US$270 million for overseas oil
exploration by selling floating rate notes.
Three months earlier, KNOC issued $470 million worth of the notes to pay for the
purchase of Petro-Tech Peruana S.A, a U.S.-owned Peruvian energy company.
According to foreign media, KNOC is vying with Sinopec, China's largest oil
refiner, to take over Addax Petroleum Corp.
Sinopec has made a $8 billion bid for Addax, the Sunday Times, a British
newspaper, said on Sunday in a news story carried on its Website.
"Sinopec, the Chinese state oil group, is understood to have tabled the
indicative offer last week, trumping an earlier bid by the Korean National Oil
Corporation," the newspaper said.
KNOC declined to comment on the report.
"There is nothing for us to confirm on the report," said Jeon Byong-hyuk, a
spokesman for KNOC.
Addax, a London-listed oil exploration group, has fields in the Middle East and
West Africa.
ksnam@yna.co.kr
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