In the process of exploring block 15-1/05 in the sea off southeastern Vietnam, SK Innovation additionally discovered crude oil.

SK Innovation drilled about 4,295 m in depth from early March in block 15-1/05 of Vietnam called the Lac Da Trang (meaning white camel) field. In the process, an oil layer with a total of 116 m in thickness was discovered in the first and second target sections. The petroleum initially in place (PIIP) is expected to be calculated through a more detailed evaluation.

▲ Block 15-1/05 on the sea off southeastern Vietnam where SK Innovation additionally discovered crude oil through exploration and block 15-5 where crude oil is being produced since 2003

Block 15-1/05 in Vietnam is located in the Cuu Long* Basin alongside block 15-1, where SK Innovation started producing crude oil in 2003. The company thus signed a contract for mining right for block 15-1/05 with the Vietnamese government in February 2007. As for block number 15-1/05 of Vietnam, SK Innovation holds 25% of total shares; a United States company (Murphy), 40%; and PetroVietnam Exploration Production Corporation (PVEP), a state-run petroleum company of Vietnam, 35%.

* Cuu Long: It is located at the Mekong Delta in southern Vietnam. – Source: Wikipedia

SK Innovation thus verified the commercial viability of oil in the Lac Da Vang field near the Lac Da Trang field, where it has just discovered crude oil, after a pilot production of up to 2,450 barrels a day in 2015. Afterward, SK Innovation declared the commercial viability of the Lac Da Vang field in January last year and is currently preparing its development with the goal of producing oil in 2021.

Petroleum development projects typically require a long period before making achievements from the securing of mining rights to exploration, development, production, and creating profit. As such, SK Innovation could additionally discover crude oil in the Lac Da Trang field of block 15-1/05 in Vietnam, thanks to its own drilling and evaluation technological competencies and the long-term investment of its managers.

The company aims to grow into the top foreign petroleum development company in the Cuu Long Basin by continuously cooperating with the Vietnamese government based on its successful experiences conducting the entire process of petroleum development projects, such as the exploration, development, and production, at block 15-1 in Vietnam, as well as its own technological evaluation.

SK Innovation first advanced into the resources development business in 1983 and produced crude oil and liquefied natural gas (LNG) of about 53,000 barrels of oil equivalent (BOE) daily on average in 2018 by working at 13 blocks in 9 countries and on 4 LNG projects. SK Innovation has secured crude oil and LNG of a total of 510 million BOE as of the reserves confirmed at the end of 2017.