Tunis:Seoul SK earthon Co., a South Korean oil exploration and production company, announced that oil production has commenced at an offshore field in Vietnam where it holds a stake.
According to Yonhap News Agency, the U.S.-based Murphy Oil Corp., which operates Block 15-1/05, initiated production at the Lac Da Vang field in the Cuu Long Basin late last month. SK earthon has a 25 percent stake in this block, having invested in the project since 2007. The remaining stakes are held by Murphy Oil and Vietnam's state-run PetroVietnam Exploration Production Corp. (PVEP) with 40 percent and 35 percent respectively.
The block is estimated to contain total oil reserves of 60 million barrels, with production anticipated to reach up to 25,000 barrels per day once the project is fully developed. SK earthon expressed its commitment to expanding oil exploration and development activities in Vietnam to ensure a stable energy supply amid global geopolitical tensions and supply chain challenges.
Additionally, SK earthon has been broadening its exploration and production operations in China and Southeast Asia to boost the profitability of SK Innovation, its parent company. Since 2022, SK earthon has generated over 1 trillion won (approximately US$748 million) annually from its overseas projects. SK earthon is a wholly owned subsidiary of SK Innovation, which is part of the SK Group, a conglomerate involved in industries ranging from semiconductors to construction.