SK Earthon Co. is seeking buyers for stakes in three Vietnamese oil blocks valued at 200 billion won ($140 million), according to people familiar with the matter, as parent SK Innovation Co. intensifies asset sales to bolster its balance sheet.
The oil exploration unit is marketing its 25% interest in blocks 15-1/05, 15-2/17, and 16-2, while keeping its flagship Block 15-1 off the market. That producing field has pumped more than 400 million barrels since operations began in 2003.
Industry observers cautioned that valuing exploration-stage assets proves far more complex than established fields, given the substantial capital requirements and development timelines that can exceed a decade. Any transaction would also require approval from joint venture partners Murphy Oil Corp., which holds 40%, and state-owned PetroVietnam, with 35%.
The divestment forms part of SK Group’s broader restructuring drive, which saw the conglomerate reduce its consolidated subsidiaries from 649 to 634 in the first half of this year. The group has already exited its stake in Vietnam’s Vingroup for 1.3 trillion won ($935.5 million) and is pursuing additional asset sales to support cash-burning units, particularly battery maker SK On.
Block 15-2/17, where Murphy confirmed an oil discovery earlier this year, may contain 170 million barrels of contingent resources, though commercialization remains uncertain. SC Securities is managing the sale process.
