SK Innovation exits from oil biz in U.S. by selling its assets in shale mines

[Photo provided by SK Innovation Co.]

South Korea’s refiner and battery maker SK Innovation Co. will sell its rights and business assets in shale oil mines in North America in line with its corporate mandate to phase out of carbon-emitting fuel sources.

SK Innovation said on Sunday that it will sell its business license and assets in North America to Texas-based BenchMark Energy Corp. The company will finalize the deal for the stake sale with BenchMark Energy this month. Financial terms for the deal were not disclosed.

The divesture involves ownership and assets in mines across the U.S. held by SK Plymouth and SK Nemaha, subsidiaries under SK E&P America. SK Innovation set up SK E&P America in 2014 to oversee mining business in North America.

SK E&P America had acquired stakes in active mines in Crane County, Texas, and Grant and Garfield Counties in Oklahoma in 2014. In 2018, the local entity established SK Nemaha and acquired entire stake in U.S. shale oil company Longfellow to secure additional production mines Garfield.

The proceeds from the latest business deal would go to fuel its Green Balance 2030, SK Group-wide growth initiative to shift towards environmentally-friendly projects, and environmental, social, and governance (ESG) management.

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