SK E&S On "Crude Oil Discovered in Vietnam Block... Daily Production 4,700 Barrels"

Exploration Success Four Years After Vietnam 15-1/05 Block
Resource Development Good News Following China's 17/03 Block Oil Production

SK Innovation subsidiary SK Earth On, a resource development company, announced on the 16th that it has discovered an oil reservoir with a daily production capacity of 4,700 barrels in an offshore block in Vietnam. This is the first exploration success in four years since the Vietnam 15-1/05 block in 2019.

SK Earth On discovered the oil reservoir through exploratory drilling in the 16-2 block located offshore in southeastern Vietnam and conducted a Drill Stem Test (DST). In the first reservoir section, it succeeded in producing up to approximately 4,700 barrels of oil and 7.4 MMscf (1 million standard cubic meters) of gas per day. Currently, a production test is underway for the second reservoir section. A reservoir refers to a layer underground where oil or natural gas accumulates. The original oil in place will be estimated through detailed evaluation work.

This is the first time in four years since the Vietnam 15-1/05 block in 2019 that SK Earth On has confirmed oil reserves during the exploration phase. In September this year, oil production began in the China 17/03 block. Going forward, SK Earth On plans to evaluate the commercial viability of the 16-2 block through additional exploratory and appraisal drilling, and if sufficient commerciality is secured, it will move to the development phase and establish an oilfield development plan.

The 16-2 block is located within the Cuu Long Basin, which is considered a highly prospective area for exploration in Vietnam. SK Earth On signed a Farm-Out Agreement (FOA) with Vietnam's state-owned oil company, PVEP (Petro Vietnam Exploration Production), in 2019 to participate in and operate the 16-2 block, and officially became the operator by acquiring a 70% stake in the 16-2 block in 2020.

Drilling rig installed at Vietnam Block 16-2 [Photo provided by SK E&S]

SK Earth On began its oil development business in Vietnam by participating as a partner in the 15-1 block in 1998. Since then, it has additionally secured the 15-1/05, 15-2/17, and 16-2 blocks. The 15-1 block has been producing oil since 2003 and continues production, while the 15-1/05 block declared commerciality in 2019 and is preparing for development to produce oil.

An SK Earth On official stated, "Vietnam is a promising region for resource development in Southeast Asia, possessing production blocks (15-1 block), development blocks (15-1/05 block), and exploration blocks (16-2 block, 15-2/17 block). Having succeeded in discovering oil in the 16-2 block, we will do our best to continuously generate results based on our competitiveness in oil development projects."

Since entering the overseas resource development business in 1983 by participating in the Karimun block in Indonesia as the first private company, SK Earth On is currently conducting resource development projects worldwide across 10 blocks in 8 countries and 4 LNG projects. It produces approximately 57,700 barrels of oil equivalent per day of oil and natural gas.

This content was produced with the assistance of AI translation services.