In this context, we have been involved in oil development projects(exploration & production; E&P) which we believe can create synergy effects with the LPG side of business and provide fresh growth momentum. By participating in overseas oil development projects, we are better poised to generate high profits from the upstream energy and secure a stable source of energy imports, which means a stable supply of LPG to the domestic market.

As a first step, SK formed a consortium with KNOC in early 2006 and joined the onshore oil exploration project on the Kamchatka peninsula of Russia.

This year, SK Gas plans to take part in prospecting for potential oil reserves - mainly in Central Asia and Southeast Asia, while acquiring stakes in viable oil fields to build a stable investment portfolio in the long term. Moreover, we are considering the launch of a mining business, drawing on our oil exploration experience and capacity.

Building upon the experience in energy we have accumulated so far, we will do our utmost to ensure successful oil exploration through thorough project and risk management.

SK gas acquired shares of 'PANABLU(Ulreung Mineral)', a deep-sea water developer, in Jun. 2008 as the first step into the deep-sea water market. Deep-sea water more than 200m deep, but not exposed to sunlight is organism-free, germ-free and contains ion minerals in its most natural form. It is known as the finest natural source capable of supplementing minerals needed within our body. By supplying clean and healthy water, SK gas hopes to serve as a contributor to a higher quality of life for the people and quality water resource developer in the years ahead.

Going forward, SK gas will lay the groundwork for new business with a long-term view believing that it is part of investment to ensure sustainable growth, on which we will stand strong to take off as a global energy, and an environmentally friendly company.