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SK Earthon Achieves Milestone: First Crude Oil Shipment from China’s LF 12-3 Oil Field

SK Earth On, SK Innovation's subsidiary, marks a historic moment with the inaugural crude oil shipment from China's LF 12-3 oil field
South Korea
s 096770.KO Mid and Small Cap 2000
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SK Earthon, the resource development arm of SK Innovation, has accomplished a groundbreaking feat by completing the maiden shipment of crude oil from China to Korea. The shipment originated from the LF (Lufeng) 12-3 oil field, located in the northeastern part of the South China Sea, specifically the 17/03 block, which commenced production in September.

Announcing this achievement on the 22nd, SK Earthon revealed that approximately 400,000 barrels of crude oil were loaded onto an oil tanker from a floating crude oil production and storage facility (FPSO). This quantity represents about 15% of Korea’s daily oil consumption.

The 17/03 block in China is significant as it marks the first successful crude oil production site where SK Earth On holds operating rights. The company initially discovered crude oil during exploration well drilling in 2018, following a mineral rights agreement with CNOOC (China Offshore Oil Corporation) in 2015. Subsequent to various development stages, including oilfield evaluation and production platform construction, the earnest production of crude oil commenced in September of the current year.

Situated approximately 300km from Shenzhen, China, the daily peak production of the 17/03 block is around 29,500 barrels of crude oil. SK Earthon anticipates generating close to 500 billion won in sales from this block in China next year.

To commemorate this achievement, SK Innovation Vice Chairman Kim Jun and SK UsOn President Myeongseong celebrated the first crude oil shipment and acknowledged the dedication of SK Uson members over eight years. They visited the crude oil production platform and floating crude oil production and storage facilities in China’s 17/03 block to assess business matters.

Vice Chairman Kim Jun expressed pride, noting that China’s 17/03 block showcases SK Earthon’s independent technology success in all aspects, from exploration to development, production, and shipment. He emphasized the fulfillment of the vision set by former SK Chairman Choi Jong-hyun, aspiring for the company to specialize in resource development and contribute to national energy security.

SK Uson CEO Myung Myeong pledged ongoing efforts to reduce carbon dioxide emissions during crude oil production, aiming to establish new milestones in the resource development business.

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