■ The company confirmed the oil reserves in Block 16-2 in the southeastern offshore area of Vietnam, the first exploration success in 4 years following Block 15-1/05 in Vietnam

■ Vietnam is a promising region for resource development in Southeast Asia, where SK Earthon holds production, development, and exploration blocks

■ Following the crude oil production success in China’s Block 17/03, SK Earthon stated, “We will strive to continuously create outcomes based on the competitiveness of our E&P business”

SK Earthon, an exploration and production (E&P) subsidiary of SK Innovation, has successfully discovered crude oil in an offshore block in Vietnam after four years. The discovery was made during the exploration stage, which is the first step in resource development, following the success of crude oil production from Block 17/03 in China last September.

On November 16, SK Earthon announced that the company had discovered an oil layer through exploratory drilling in Block 16-2 located off the southeastern coast of Vietnam and conducted a Drill Stem Test (DST). As a result, the first reservoir* section recorded a maximum daily production of 4,700 barrels of crude oil and 7.4 MMscf (1 million standard cubic feet) of gas. An assessment for the second reservoir is currently underway and it is expected that additional crude oil and gas may be found. The amount of raw materials will be calculated through a detailed assessment.
*Reservoir: A layer where crude oil or natural gas is accumulated underground.

This discovery of the oil reserves became the company’s first time in four years after they found the reserves in Block 15-1/05 in Vietnam in 2019. SK Earthon plans to assess the commercial viability of Block 16-2 through additional exploratory and appraisal drilling. If sufficient commercial viability is confirmed, the company will proceed with the development stage and establish an oil field development plan.

Block 16-2 is located in the Cuu Long Basin, which is considered one of the most promising exploration areas in Vietnam. In 2019, SK Earthon signed a Funding Opportunity Announcement (FOA) with Vietnam’s national oil company ‘PVEP (Petro Vietnam Exploration Production)’ to participate and operate in Block 16-2, and officially became its operator by acquiring a 70% stake of the block in 2020.

SK Earthon began its E&P business in Vietnam by participating as a partner in Block 15-1 in 1998. Since then, the company has secured additional blocks, including 15-1/05, 15-2/17, and 16-2. Block 15-1 has been producing oil since 2003 and remains an ongoing operation to this day, while Block 15-1/05 declared commercial viability in 2019 and is currently preparing for oil production.

An official from SK Earthon stated, “Vietnam is a promising region for resource development in Southeast Asia as it holds production (Block 15-1), development (Block 15-1/05), and exploration (Block 16-2 and Block 15-2/17) blocks. With the successful discovery of crude oil in Block 16-2, we will strive to continuously create outcomes based on the competitiveness of our E&P business.”

Established as a separate entity from SK Innovation in 2021, SK Earthon focuses its business on two pillars- the E&P and green businesses. Since becoming Korea’s first private company to enter the overseas resource development industry through equity participation of the Karimun block in Indonesia in 1983, the company currently participates and manages 10 blocks across 8 countries and 4 LNG projects, producing approximately 57,700 barrels per day (oil equivalent) of oil and natural gas. In the green business sector, the company is leveraging its exploratory technology accumulated through its E&P business to propel CCS (Carbon Capture and Storage) projects.

[Photo] The drilling facilities installed in Vietnam’s Block 16-2.