SOUTH KOREA - National Pension Service, South Korea's biggest investor, said it is in talks to buy into a US oil pipeline to diversify its portfolio.
The Korea Economic Daily earlier reported that the pension fund was picked as a preferred bidder to buy 23.44 percent of Colonial Pipeline Co. from Chevron Corp. for about KRW1trn ($847m).
National Pension denied the company was picked as the preferred bidder, according to the e-mailed statement today. Kim Ha Young, a spokesman, declined to give details about the talks. Gareth Johnstone, a spokesman for Chevron in Singapore, declined to comment.
South Korea has said pension and sovereign wealth funds may invest in overseas energy assets as Asia's fourth-largest crude importer competes for natural resources with China and India. Korea Investment Corp., a $30bn fund, said in June it will invest $200m in Chesapeake Energy Corp., the third- largest U.S. natural-gas producer.
Chevron Midstream Investments has a 23.44% stake in Colonial, which transports fuels from refineries in Texas, Louisiana, Mississippi and Alabama to marketing terminals, according to Colonial's website.
National Pension, which had KRW295trn in assets as of June, is investing in overseas stocks and real-estate from Australia to the U.K. to diversify from domestic fixed-income holdings. The fund plans to boost its overseas investments to at least 20% of assets by 2015, from about 11% now.
National Pension said on August 17 it will buy a 51% stake in a shopping mall near Paris for about KRW350bn ($300m), adding to property investments in London and Berlin.
Professional Pensions is looking to update its list of pensions master trusts in the UK ahead of authorisation. Can you help?
RPMI Railpen is in the next step in the journey towards achieving cost disclosure. Victoria Bell tells Stephanie Baxter about taking part in the Cost Transparency Initiative's pilot phase
Interserve's numerous defined benefit (DB) schemes have retained a sponsor link after the company entered into administration and was sold.
Chris Hannon has been named chairman of the Railways Pensions Trustee Company after a unanimous vote of approval from its board last week.