SK Earthon, an energy resource development subsidiary of SK Innovation, announced on the 13th that it successfully commenced first crude oil production (First Oil) from the Golden Camel structure in the 15-1/05 block in Vietnam.
This is a fruit achieved approximately two years after commencing full-scale development in 2024. Murphy Oil Corporation, the operator of the 15-1/05 block in Vietnam, completed production preparations for the Golden Camel structure ahead of schedule and began producing first crude oil from late September last month, earlier than originally planned. SK Earthon holds a 25% stake in the 15-1/05 block. The stakes of Murphy, the block operator, and PVEP are 40% and 35%, respectively.
The estimated recoverable resource volume of the Golden Camel structure is approximately 60 million barrels. Currently, crude oil is being produced stably through the first production well. Murphy plans to sequentially drill additional production wells in the future to increase production volume. Upon completion of additional development, the daily production volume for the entire block is expected to reach up to 25,000 barrels. With this commencement of production, SK Earthon has expanded its production bases in Vietnam, following the 15-1 block where it began crude oil production in 2003.
An official from SK Earthon stated, "This crude oil production is significant in that it secures an energy supply foundation through overseas resource development amid increasing geopolitical tensions and uncertainty in the international energy supply chain," adding, "We plan to strengthen our overseas resource development capabilities and continue contributing to diversification of energy sources and national energy security."
SK Earthon and Murphy additionally discovered a 56-meter thick oil layer through drilling at a depth of approximately 3,800 meters in the exploration well of the North White Camel structure near the Golden Camel structure where production was recently commenced. Previously, SK Earthon and Murphy discovered crude oil in the Red Camel structure within the 15-1/05 block last May and succeeded in test production. SK Earthon plans to conduct additional evaluations of the North White Camel structure together with operator Murphy and Vietnam's state-owned oil company PVEP, and to maximize reserves and production volume by developing the Golden Camel and Red Camel structures in a linked manner.
SK Earthon is achieving continuous resource development results in the Vietnam Cuu Long Basin, including successful crude oil discoveries in the nearby 15-2/17 block. It is expected that SK Earthon will continue the success of its Vietnam business through a "clustering strategy" that shares technology and experience and improves development efficiency based on geographic proximity between blocks.
The SK Innovation group, including SK Earthon, has been involved in 13 oil fields and 5 gas fields across 11 countries worldwide since first entering the resource development business in 1983. It is currently producing an average of 58,000 barrels per day (oil equivalent, based on SK's stake) of crude oil and gas. An official from SK Earthon said, "This is the fruit of the clustering strategy pursued in Vietnam," adding, "We will continue to expand our Vietnam business through linked development between adjacent blocks and strengthen our position in the Southeast Asian resource development market."
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