SK E&S

Chairman Chey pushes the boundaries of global partnership during his visit to the U.S.A.

SK jointly develops resources on US mainland for exports to a third country

- A successful US-Korea partnership utilizing the 2nd Shale Revolution from the U.S.A. 
- SK expands its perimeter of global resource development from Latin America, the Middle East and Southeast Asia, to North America
- Korean government gains both greenhouse gas reductions and energy security by raising the proportion of green LNG
- US government helps create thousands of jobs and ramp up energy exports with massive investment from SK
 
 
The SK Group brought global partnership to a new level as it struck a deal with American energy companies during President Moon Jae-in’s trip to the U.S.A. ahead of the US-Korea summit.
 
SK Chairman Chey Tae-won’s win-win partnership model has finally come to fruition as large-scale investment by a Korean corporation paired up with an American energy company.
 
It is especially significant that both countries made the highest-level global partnering model possible as they searched for global business and investment opportunities, sharing their management infrastructure such as core capacity, information and networks in tandem with the 2nd Shale Revolution, widely expected to be the mainstay of the Trump administration’s aggressive energy development policy.
 
SK Group created new profit-making opportunities by exporting its rich resources in the US to a third country while strengthening Korea’s position as an oil producer without the resource itself, while supporting its American partners in the expansion of exports through its partnership deals, and the creation of jobs with its investments.
 
SK Group announced in the afternoon of the 28th of June, local time at the St. Regis Hotel in Washington D.C., that SK Chairman Chey Tae-won, along with Yu Jeong Joon, Chairman of the Global Growth Committee and CEO of SK, inked MOU to strengthen its strategic alliance, focusing on American shale oil, with the American energy companies GE (General Electric) and Continental Resources, during his visit to the U.S.A. as a member of a presidential business delegation.
 
Chairman Chey made it clear that “the business model has to be win-win for both parties for sustainable business cooperation.” He also added, “The MOUs between Korean SK and American GE and Continental Resources are significant in that they represent the highest level of global partnering model; one that benefits not only the partner companies but also the respective countries as well, as we jump on the 2nd Shale Revolution in the US.”
 
SK Group partnered with GE for their joint global marketing effort to sell, not only the shale gas. but also LNG and LPG produced in the US, to clients in the power generation industry across the world, including Asia, Latin America, and Africa. SK provides the energy, and GE the development facilities, while sharing project information and networks, when both countries agreed to work together in new renewable energy production, including solar and wind power, in Southeast Asia and the Middle East.
 
The signing of the MOU signals a new beginning to the acceleration of global businesses, based on their previous strategic alliance. Yu Jeong Joon, Chairman of the Global Growth Committee and CEO of SK, and John Rice, Vice Chairman at GE, signed the MOU.

 
SK Group also plans to expand the joint development of American shale using the operational capacity and relevant knowledge concerning shale development of Continental Resources to further explore future business opportunities with shale, where production is expected to continue to increase. Yu Jeong Joon, Chairman of the Global Growth Committee and CEO of SK, and Harold G. Hamm, Chairman of Continental Resources, signed this MOU.
 
Previously in 2014, SK Group’s energy subsidiary SK E&G acquired 49.9% of a gas field stake in the US from Continental Resources for $360 million and began work on joint shale gas development. SK E&S was able to secure 38 million tons of gas out of a total of 76 million tons of gas reserves, which is more than the entire volume of natural gas imported to Korea last year (33.45 million tons).
 
SK Group elaborated that the deal is a win-win situation at the country level as well.
 
The American LNG enables the Korean government to raise the proportion of clean energy while lowering that of LNG, strengthening the country’s energy security. The new renewable energy development business can also contribute to the government’s goal of 12% (out of 37%) of the Business-as-Usual target emissions rate by 2030. 
 
The US government can also expect significant benefits from this deal. SK Group plans to invest KRW 1.8 trillion in the US over the next five years, with KRW 3 ~ 5 trillion more coming for potential investment opportunities. This is expected to improve the American trade balance with close to KRW 2 trillion worth of annual energy production and export while hiring between 4,000 and 5,000 people; well suited to satisfy the Trump administration’s pledge of job creation through resource development.  
 
Lee Hang-soo, head of SK Group’s PR Team said, “SK’s representative growth strategy is for its affiliates and subsidiaries to build partnerships with major global players for growth through cooperation in the areas of resources, technology, and marketing.” He then added, “Under Chairman Chey’s leadership, SK has been strengthening its global partnerships in its core business areas of energy, chemicals, ICT, and semiconductors.” 
 
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