* KNOC seeking buyer with $4.7 bln refinery, petchem
* S-Oil could participate in tender closing on Monday -KNOC
SEOUL Feb 17 Korea National Oil Corp (KNOC) is
seeking a refiner or a petrochemical maker willing to buy land
to build a 5 trillion won ($4.70 billion) refining or
petrochemical plant, the state-run oil company has said in a
public tender document.
KNOC will close a tender to sell 92 hectares (227 acres) of
the necessary land for 519 billion Korean won ($488 million), at
4 p.m. (0700 GMT) on Monday, the tender invitation on a public
tender web site (www.onbid.co.kr) showed.
South Korean refiner S-Oil Corp is likely to bid
to acquire the land for a refinery or petrochemical plant it has
been planning, said a KNOC source who declined to be identified
as the matter is sensitive.
South Korea media have also been reporting that S-Oil has
been asking the government to help it get land for its project.
S-Oil, with 669,000 barrel-per-day of refining capacity, is
looking to expand its paraxylene plant by buying the land from
KNOC, according to the media reports. Paraxylene, used to make
clothing and plastic bottles, is produced by processing naphtha,
a refined product of crude oil or condensates.
An S-Oil spokesman was not reachable for comment.
KNOC has said that potential bidders must submit approvals
from their boards of directors for a refinery or petrochemical
plant investment plan as one of the qualifications for
participating in the tender for the land.
Results of the tender will be available at 11 a.m. on
Tuesday, according to the tender document.
The land on sale is located in the city of Ulsan, over 300
kilometres southeast of Seoul.
S-Oil's refining facility is in the same city. S-Oil's
largest shareholder with a 35 percent stake is Aramco Overseas
Co B.V., a unit of Saudi Arabian Oil Company (Aramco).
($1 = 1063.4 Korean won)
(Reporting by Meeyoung Cho; Editing by Tom Hogue)