S Korea secures 27 pct stake in Kazakh gas field

SEOUL, Sep 3 (Reuters) South Korea has secured a 27 per cent stake in a Kazakh natural gas field which is estimated to hold 1 billion barrels of probable oil reserves, Seoul's energy ministry said today.

State-run Korea National Oil Corporation (KNOC) and Kazakhstan's state oil firm, KazMunaigaz National Oil Company (KMG) reached a final agreement on Friday, although the price is to be disclosed once the deal is sealed later this year, the Ministry of Commerce, Industry and Energy said.

KNOC has a pre-emptive right to acquire another 23 per cent, which would secure South Korea an overall 50 per cent stake or 500 million barrels of oil reserves, enough to meet the country's total demand for nearly seven months.

Drilling to confirm the field's scope should begin early next year.

This latest deal comes as South Korea is stepping up efforts to push into resource-rich Central Asia to source energy needs.

REUTERS AKJ HS0904