SEOUL-- SK Innovation Co.'s planned sale of its stakes in two Peruvian gas fields to a foreign partner has been canceled amid disapproval from the Peruvian government, a regulatory filing showed Tuesday.

The South Korean refiner said in the regulatory filing that its contract with Argentine energy company, Pluspetrol, to hand over its 17.6 percent stakes in Block 88 and Block 56, located in the Cusco region, has been ended.

"Despite our continued efforts, the contract has inevitably been terminated without completion of the selloff process due to the Peruvian government's position in disapproval of the sale," the company said.

A SK Innovation official declined to comment.

SK Innovation clinched the deal with Pluspetrol in September 2019, in what would have helped the company secure US$1.05 billion in cash.

SK Innovation had said it would use the money to increase investment in other promising energy sectors, like battery and materials areas, and expand its presence in the Asian and North American markets.

Source: Yonhap News Agency