SK Innovation, the energy developing unit of local conglomerate SK, said on Friday it would be setting up an oil and gas exploration firm in the U.S.
The shareholders of the company on that day approved the establishment of SK E&P America and invested 419.3 billion won. The new firm will be wholly owned by SK Innovation, which has its U.S. headquarters in Houston.
For its core line of business, SK E&P America is planning to buy oil reserves in the U.S. and Canada.
“The establishment will serve as the local incorporation of the SK E&P’s U.S. branch,” an SK spokesman said.
SK Innovation has been seeking new business opportunities after selling three mine reserves in Brazil to Maersk Group of Denmark in 2011 for $24 billion.
Market insiders have raised questions over the future of the firm after the conviction of the owner at SK Group.
Chairman Chey Tae-won was found guilty of corruption and sentenced to four years in jail. He has already announced that he will resign as a member of the board of SK Holdings Co., SK Hynix Inc. and SK C&C.
But with the news of a new firm to come, the stock price of SK Innovation, which has been at a 52-week record low of 117,000 won a share as of Thursday, closed at 119,000 won on Friday.
By Bae Ji-sook (email@example.com