South Korean energy company SK earthon has acquired equity in an oil and gas block in Indonesia

SK earthon, the energy resource development subsidiary of South Korean energy company SK Innovation, announced on Monday (November 24th) that it had acquired a 34% stake in the North Ketapang oil and gas block project in Indonesia the previous day, officially launching the local resource exploration project.

Yonhap News Agency reported that SK earthon will join hands with North Ketapang SDN. Bse, a subsidiary of PETRONAS of Malaysia (holding 51%), and North Ketapang SDN. Bse, a subsidiary of Petronas of Indonesia (holding 51%) (Holding 15% of the shares) jointly carry out exploration operations and plan to start drilling exploration Wells within the year.

The North Kedah oil and gas block is located off the northeastern coast of Java Island and is one of the most promising oil-producing areas in Indonesia. Especially, the recent successful discovery of crude oil in new strata outside the existing reservoirs around oil and gas blocks is regarded as a high-potential area for oil and gas resources.

With this acquisition, SK earthon now has a cumulative stake in three blocks in Indonesia. The company won the Sepang and Binaiya blocks ina tender led by the Indonesian government earlier this year. Both are located near the northeastern coast of Java Island and are expected to create a synergy effect in project operation.

A person related to SK earthon said that this is an important step in the company's resource development cluster strategy in Southeast Asia. After Vietnam, China and Malaysia, we will further build Indonesia into a global core resource development base.