SEOUL, April 24 (Korea Bizwire) — SK Innovation Co., South Korea’s leading refiner, said Sunday its energy unit has signed a production sharing contract with Malaysian companies for a local oil block.
SK earthon Co. recently signed the deal with Malaysia’s state-run oil company Petroliam Nasional Berhad (Petronas) and Petroleum Sarawak Exploration and Production Sdn., Bhd. (PSEP) for Block SK427 off the coast of Sarawak, the company said in a statement.
SK earthon invested in an 85 percent stake in the exploration block, and as an operator, is responsible for exploration, development and production from the block. PSEP, the Sarawak-owned oil and gas company, holds the remaining 15 percent stake, it said.
“We will increase our chance of success in this Malaysian block by using our capabilities and technical excellence while accelerating our plan to expand business in Southeast Asia,” SK earthon CEO Myeong Seong said in the statement.
The company didn’t provide the value of its investment.
SK earthon and Petronas have also agreed to look for future business opportunities for carbon capture and storage (CCS) as they aim to cut carbon emissions in their businesses, the statement said.
The participating companies will make a final decision on the development of and production from the block depending on exploration results over the next four years, it said.
SK earthon and its parent SK Innovation started the resource exploration business in 1983.
As of April 2022, they have stakes in 11 blocks and operate four liquefied natural gas projects in eight countries, producing 51,000 barrels of oil and natural gas equivalent a day.
At the end of 2020, their reserves were 380 million barrels of oil and natural gas equivalent.