GS Global said Sunday it has signed a contract to invest up to US$460 million in the development of oil wells in the U.S. state of Oklahoma for the coming nine years.

The South Korean firm majoring in petrochemical and oil products signed the contract with Longfellow Nemaha LLC, affiliated with Longfellow Energy, for the purchase of 20 percent of the Nemaha oil fields owned by Longfellow Nemaha.

The signing ceremony was held in Dallas, Texas on Friday, a spokesman for GS Global said.

GS Energy and Fine Partners also agreed to purchase 10 percent each of the Nemaha oil fields owned by Longfellow Nemaha, bringing to 40 percent the total stakes held by South Korean firms.

GS Global said that it plans to attract government funds available to companies investing in overseas resources development.

The 170 square kilometers of Nemaha oil fields, located in the northern Oklahoma, has an estimated 100 million barrels of crude oil.

"This is meaningful in that GS Global began making inroads into resources development projects abroad," said Chung Taek-geun, president of GS Global.

Chung said his company will drill more than 400 boreholes in the oil fields in the coming nine years, expecting the holes to bring oil and gas for market consumption in the latter half of this year. (Yonhap)