SK Earthon and its partners struck oil off Vietnam’s southeastern coast, expanding the Korean energy company’s footprint in Southeast Asian waters as it seeks to boost production.
The discovery at the Vietnam 15-2/17 block in the Cuu Long Basin revealed an oil layer about 112 meters thick, dubbed Golden Sea Lion. Murphy Oil Corp., which operates the block with a 40% stake, confirmed the find after starting exploratory drilling in the fourth quarter. SK Earthon holds 25%, while state-owned PetroVietnam Exploration Production Corp. owns 35%.
The find builds on SK Earthon’s track record in Vietnam, where it began operations in 1998. The company, a unit of SK Innovation Co., found crude in Block 16-2 in late 2022 and has already topped 10 million barrels of production at its China 17/03 block since last year.
SK Innovation’s resource development unit posted sales of 1.98 trillion won ($1.5 billion) and operating profit of 427.6 billion won through the third quarter of 2023. The company produces about 57,000 barrels of oil and gas daily across 11 blocks and three LNG projects in eight countries.
The latest discovery’s proximity to existing productive blocks may help streamline future development, according to company officials.
