- Marks second major achievement in Malaysia following the SK427 block, showcasing technical and operational prowess
- Accelerates oil and gas exploration and production projects across Southeast Asia, including China, Vietnam, and now Malaysia
SK Earthon, SK Innovation’s subsidiary for petroleum exploration and production, has once again demonstrated its 40 years of accumulated expertise in the oil and gas exploration and production business in Southeast Asia.
SK Earthon announced on the 8th (KST) that it had signed a Production Sharing Contract* (PSC) with PETRONAS, through Malaysia Petroleum Management (MPM) for the Ketapu Cluster, located off the coast of Sarawak, offshore Malaysia.
*Production Sharing Contract (PSC): A common type of mineral rights agreement in major Asian oil-producing countries, where the contractor bears the costs and risks of exploration and development, and the produced oil and gas are shared between the local government and the contractor based on a pre-agreed ratio.
SK Earthon was selected as the winning bidder for the Ketapu Cluster through Malaysia Bid Round (MBR+) Round 1, organized by MPM in October 2023.
SK Earthon will hold 85% participating interest in the PSC, including operatorship, while the remaining 15% will be held by PSEP (Petroleum Sarawak Exploration and Production Sdn Bhd), a wholly owned subsidiary of PETROS, which is the state-owned company of Sarawak, Malaysia.
The Ketapu Cluster comprises four discovered resource opportunities that have identified oil and gas discoveries but have not been developed yet. It is located within the SK427 block area, for which SK Earthon acquired operation rights in April 2022.
PETRONAS has granted SK Earthon a four-year development period and a 20-year production period. The company plans to conduct the development feasibility study by 2025.
Potential synergies between the SK427 block and the Ketapu Cluster are also expected. SK Earthon plans to explore development opportunities by leveraging the connection between these blocks.
This contract is a significant achievement as it recognizes SK Earthon’s technical and operational capabilities on an international level. It also marks the establishment of SK Earthon’s position and growth foundation as an operator in Malaysia, following successes in China and Vietnam.
SK Innovation and its affiliates, including SK Earthon, have been involved in the Oil & Gas exploration and production business since 1983. The company is currently participating in 10 blocks and 3 LNG projects across 8 countries, producing approximately 57,000 barrels of oil equivalent per day.
