LG Corp. buys 20% stake in Colombian energy firm

LG Corp., a Korean trading company, said Tuesday that it has signed a deal to purchase a 20 percent stake in GeoPark Colombia, a Colombian energy company, for $24 million.

GeoPark Colombia, a unit of GeoPark, an oil explorer operating in Chile and Argentina, has a total of 10 oil mines in Colombia, the local trading company said.

LG Corp. signed a deal in March 2010 to form a strategic partnership with GeoPark to take over some of its oil mines in Central and South America. This resulted in LG Corp. acquiring three oil mines from the company in May 2011, a first for a South Korean trading company.

"The stake purchase has given us a strong foothold to expand our presence in the Central and South American market," an LG official said. "The company will expand its business portfolio to logistics from natural resources exploration." (Yonhap)