Apollo-Led Consortium Buys El Paso Biz

South Korean state oil firm Korea National Oil Corp. said a consortium led by private equity firm Apollo Global Management, of which it is a part, will buy U.S.-based El Paso Corp.‘s oil and gas business for $7.15 billion. Kinder Morgan Inc. is selling off the assets as part of its $21 billion deal to buy El Paso, which also has a big pipeline business, Reuters wrote Wednesday.

(Reuters) – South Korean state oil firm Korea National Oil Corp (KNOC) said a consortium led by private equity firm Apollo Global Management LLC, of which it is a part, will buy U.S.-based El Paso Corp’s oil and gas business for $7.15 billion.

 

Kinder Morgan Inc is selling off the assets as part of its $21 billion deal to buy El Paso, which also has a big pipeline business.

 

KNOC said it expects the deal to close in the first half of this year and that Riverstone Holdings and Access Industries were also part of the consortium, confirming an earlier Reuters story.

 

KNOC, which last year bought one-third of Anadarko Petroleum Corp’s interest in the Eagle Ford shale field in South Texas for $1.55 billion and a stake in U.S. oil company Parallel Petroleum, is among many foreign energy companies looking to raise their presence in the United States.

 

Production from shale fields has jumped in recent years as the hydraulic fracturing technology has helped companies tap into previously difficult-to-drill areas.

 

KNOC said in December it plans to invest between $3 billion and $4 billion in 2012 to acquire overseas oil assets and beef up daily oil production.