SK Earthon Wins Malaysian Offshore Block... Accelerates Southeast Asia Business Expansion

'SK 427' Block 85% Stake, Operating Rights Secured
Also Exploring CCS Business Opportunities with Petronas

Myungseong, CEO of SK E&S On (third from the left), is holding an online signing ceremony for the production sharing contract of the oil field with Petronas and Petros on the 22nd, and is taking a commemorative photo with SK E&S On officials.

[Asia Economy Reporter Oh Hyung-gil] SK Innovation's oil development subsidiary SK Earth On is embarking on oil exploration after successfully winning a block bid in Malaysia for the first time.

On the 22nd (local time), SK Earth On announced on the 24th that it had signed a production sharing contract for the block with Petronas, Malaysia's national oil company, and Petros, the oil development company of Sarawak state in Malaysia. SK Earth On participated in the Malaysian block bid last year and succeeded in winning the 'SK 427' block located offshore in the Sarawak region.

SK Earth On secured an 85% stake in the 'SK 427' block and became the operator responsible for exploration, development, and production of the block. It plans to commence exploration with Petros, which holds the remaining 15% stake. Whether to proceed with development and production will be finally decided based on the exploration results over the next four years.

The SK 427 block is located in the shallow waters off Sarawak, Malaysia, and is considered a highly promising exploration area due to confirmed medium to large-scale crude oil reserves in the vicinity of Sarawak.

Additionally, both companies agreed on the necessity of carbon reduction and decided to jointly explore future opportunities in carbon capture and storage (CCS) projects.

SK Earth On has selected the green sector based on CCS as a new growth axis to execute its 'Carbon to Green' financial story and is discovering various project opportunities domestically and internationally.

Myungseong, President of SK Earth On, emphasized, "Based on SK Earth On's long-accumulated oil development capabilities and differentiated technological expertise, we will increase the success rate of this Malaysian project and accelerate our business expansion strategy in Malaysia and the Southeast Asian region."

Location map of the 'SK 427' block where SK On succeeded in the offshore block bid

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