SK Energy Sells Stake in Peru LNG to Marubeni

SK Energy has decided to sell a 10% share in Peru LNG Company LLC to Marubeni LNG Development B.V., which is wholly-owned by Marubeni Corporation for an estimated $100 million.

By this deal, the shareholders of the Peru LNG will be SK Energy (20%), Repsol YPF (20%), Hunt Oil (50%) and Marubeni (10%). Peru LNG will build, own, and operate a liquefaction facility at Pampa Melchorita, Peru, which is scheduled to be operational in 2010. The plant will sell 4.45 million metric tons of LNG per annum (MMTPA).

SK Energy retains its share in Peru LNG, although this transaction significantly reduces its investment amounts by about $200 million in the Peruvian company. There is also no change in SK¡¯s proven reserve and production in Peru because the scope of this deal is limited to the LNG plant and pipeline project. SK Energy is currently engaged in 26 blocks in 14 countries worldwide.

"Our intention from the beginning was to reduce our participation in Peru LNG as soon as we entered the capital-intensive construction phase of the project," said Shin Heon-Cheol, President & CEO of SK Energy. "This movement helps us restructure our energy portfolio in Peru so we can concentrate on oil and gas exploration and production."

Added Nobuo Katsumata, President and CEO of Marubeni Corporation: "This deal represents the third opportunity for us to take part in the promising LNG projects further than our current participation into Qatari and Equatoguinean LNG projects and is an important milestone in expanding our global LNG portfolio. We're very pleased with the outcome and look forward to joining forces with SK Energy on other projects in the future."