SK Earthon, a subsidiary of SK Innovation focused on energy resource development, has successfully commenced its first oil production at the Vietnam 15-1/05 block. This achievement comes approximately two years after the start of full-scale development.
According to SK Earthon, Murphy Oil, the operator of the Vietnam 15-1/05 block, completed production preparations at the Golden Camel structure ahead of schedule and began oil production at the end of September.
The recoverable resource estimate for the Golden Camel structure is approximately 60 million barrels, with stable oil production currently underway from the first production well. Murphy plans to drill additional production wells sequentially to continuously increase output, estimating that the total daily production could reach up to 25,000 barrels upon completion of further development.
The commencement of production at the 15-1/05 block allows SK Earthon to successfully expand its production base in Vietnam, following the start of oil production at the 15-1 block in 2003, and it anticipates stable revenue generation moving forward.
Additionally, SK Earthon and Murphy announced the discovery of an additional 56-meter thick oil layer during drilling at a depth of approximately 3,800 meters in the North White Camel structure, located near the newly initiated Golden Camel production.
Last year, SK Earthon and Murphy also discovered oil in the Red Camel structure within the 15-1/05 block and successfully conducted test production. SK Earthon plans to conduct further evaluations of the North White Camel structure in collaboration with Murphy and the Vietnam state-owned oil company PVEP (PetroVietnam Exploration Production), aiming to maximize reserves and production by developing the Golden Camel and Red Camel structures in conjunction.
Moreover, SK Earthon has also successfully discovered oil in the nearby 15-2/17 block, continuing its resource development achievements in the Vietnam Cuu Long Basin. The company aims to maintain its success in Vietnam through a 'clustering strategy' that enhances development efficiency by sharing technology and experience based on the geographical proximity of the blocks.
SK Earthon holds a 25% stake in the 15-1/05 block, while Murphy and PVEP hold 40% and 35%, respectively.
In light of recent geopolitical tensions and uncertainties in international energy supply chains, this oil production is significant for securing energy supply bases through overseas resource development. SK Earthon plans to strengthen its overseas resource development capabilities and continue contributing to energy supply diversification and national energy security.
Since entering the resource development business in 1983, SK Innovation, including SK Earthon, has participated in 13 blocks across 11 countries and five gas fields, producing an average of 58,000 barrels of oil equivalent (based on SK's stake) daily, thereby contributing to South Korea's energy security and independence.
An SK Earthon official stated, "The first oil production from the Golden Camel structure is the result of our clustering strategy in Vietnam. We will continue to expand our business in Vietnam through integrated development of adjacent blocks and strengthen our position in the Southeast Asian resource development market."
* This article has been translated by AI.
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