President Kim Dong-sup of Korea National Oil Corp. (KNOC) discloses his management tasks at an inauguration ceremony at KNOC headquarters in Ulsan on June 8. (Photo: KNOC)

Expectations of normalizing the ailing Korea National Oil Corp. (KNOC) are on the rise as Prof. Kim Dong-sup of Ulsan National Institute of Science and Technology (UNIST), an expert in the oil & gas development sector, took the helm of KNOC.

KNOC had suffered a setback with impaired capital as debt swelled to 18 trillion won by the end of last year.

New KNOC President Kim has on his shoulders urgent tasks, such as improving its financial structure to solving impaired capital, reorganizing its business portfolio and disposing of non-performing overseas assets.

KNOC President Kim took office at an inauguration ceremony at KNOC headquarters in Ulsan, Gyeongsangnam-do, on June 8 and he began his term.

He is now tasked with improving KNOC’s financial portfolio and disposing of non-performing assets.

KNOC is now suffering financial difficulties as the corporation saw assets it acquired in the pursuit of energy self-sufficiency and quantitative growth.

Kim said, “KNOC will max out profitability through efficiency overseas project management and supervision, strategically dispose of non-essential assets, ramp up reserve oil management capabilities and improve its financial portfolio through trading.”

KNOC will focus on choice and concentration, implementation of fast smart strategies and exploration of new growth engines.

President Kim said, “KNOC will do its utmost to improve its financial portfolio in close cooperation with government agencies to sell non-essential assets by scrutinizing its portfolio dispassionately and ramping up reserve oil management.

Some business sources demanded the restructuring of its portfolio focusing on blue-chip assets and disposing of non-performing assets.

The corporation saw burdensome interests rise due to its investing 4.8 trillion won in acquiring Harvest oil field in Canada and 1 trillion won in Kurdish well in Iraq and related SOC project, both which turned out to be a failure.

KNOC impaired capital last year for the first time since its inception. The corporation saw its total debts stand at 18.6 trillion won, surpassing 17.5 trillion won in its total assets.

KNOC decided to strengthen its mainstay function of energy security and explore carbon neutrality growth engines to make a leap forward.

President Kim said, “KNOC will make a system in which energy security and profitability can be obtained by making the petroleum exploration and development business a blue-chip one and optimizing reserve oil management.”

Kim expressed his determination to secure new growth engines such as carbon capture and storage (CCS), carbon capture and utilization (CCU) and renewable energies in keeping with a carbon neutrality initiative.

Kim said his corporation will create works suitable for the 4th Industrial Revolution and a corporate culture with an aggressive working environment. He called for his staffers to gather wisdom, participate on a voluntary basis, and suggest creative ideas with passion.

True to the management tenet, based on communications and serving, President Kim called for creating a working environment in which families feel at home by harmonizing all members and unionists.

KNOC will introduce AI and bid data in work and ramp up its global competitiveness by connecting them with petroleum exploration and development, importing, transporting and stockpiling value chains.
KNOC vowed to put into practice safety management and prevent accidents.

President Kim said, “We’re in dire straits, and we’ll go forward with a sense of pride and a positive and challenging mindset.” KNOC will write a new history by being a global exemplary company being trusted by people, he added.

President Kim has 37 years of experience in technology management and business development in oil & gas, petrochemical and renewable energy business in the industry and academia.

Since joining UNIST, he led School of Management Engineering as Dean and head of Institute for the 4th Industrial Revolution. He worked with various organizations internationally.

His experience in industry as well as in academia brings unique perspective in managing/developing business.

He joined SK Innovation, the largest oil and petrochemical company in Korea, as head of the R&D center.

 
Prior to joining SKI, Kim worked for Royal Dutch Shell for 20 years in shale oil/gas, unconventional oil recovery, Fitness for Service, Welding and materials joining as a team leader, technical advisor.

He became regional manager for the Asia-Pacific Regional Engineering & Technology at Kuala Lumpur and was responsible for 8 engineering departments.

His working experience in the US, Korea and Malaysia has brought him awareness of cultural diversity and how to work effectively globally.