1st Oil Field Investment Fund Makes Debut
By Park Hyong-ki
Staff Reporter
Energy Holdings Group has launched the country's first private equity fund investing in a U.S. oil field.
The group said Tuesday that it signed a contract with domestic institutional investors to invest $30 million in an oil field in Texas.
My Asset Investment Management will manage the fund, while the group will serve as technical consultant. The group plans to sell its shares in the oil field after further development and a valuation hike.
The oil field is operated by EnCana of Canada, the world's 19th-largest oil and gas company. GCA, an independent energy evaluating firm, and the Korea Institute of Geoscience and Mineral Resources have verified the investment destination.
``The field in which the fund invested is expected to generate stable returns through crude oil production,'' said an Energy Holdings source.
An additional investment of $60 million is planned through the fund in another oil field.
Korea Investment Trust Management said its carbon fund will invest in solar energy as its first investment.
The fund chose to invest in two solar energy projects slated for launch in South Jeolla Province and South Gyeongsang Province with a capacity of one megawatt hours of electricity.
Korea Energy Management Corp. verified the solar projects and advised the fund for investment.
My Asset said the fund involves conglomerates, financial firms and pension funds, and will pay dividends to investors every six months.
The carbon fund, the first in the country, was launched last year to invest in carbon dioxide mitigating businesses.
The fund, however, has been unable to attract institutional investors since it is new to the market.