S.Korea's KNOC, Samsung join Texas gulf gas search

SEOUL, Oct 1 (Reuters) Korea National Oil Corp. (KNOC) and Samsung Corp. have agreed to buy stakes in gas exploration projects in the Gulf of Mexico from Australia's Santos Ltd.

, the South Korean government said on Sunday.

The investment deal comes as South Korea, the world's fifth-largest oil importer, tries to secure its energy needs by participating in overseas projects.

State-run KNOC would take stakes of 15 to 25 percent in four exploration areas, named Cougar I and II, Jaguar and Sabco, the commerce ministry said in a statement.

It said Samsung would acquire 10 percent of each area, all of which lie in Texas state waters.

The developers plan to drill test wells in 2007 after identifying gas prospects this year. Any finds could start producing gas about a year after successful test wells, the ministry said.

The ministry did not reveal the investment value or estimate a size of reserves.

Santos said in September that KNOC and Samsung would join the project. Other investors in the project include private U.S. oil firm Sabco and Taiwan's Overseas Petroleum and Investment Corp.

KNOC had struck a series of energy investment deals in the past year, including a purchase of an oil sands mine in Canada.

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