Korea firm SK Earthon discovers crude oil off southeast Vietnam

SK Earthon, an exploration and production (E&P) subsidiary of South Korean chaebol SK Group, has discovered crude oil in the Block 16-2 off Vietnam's southeast coast.

The find is the first success for the firm in four years, after Block 15-1/05 in Vietnam, the firm said on Thursday. The discovery was made during the exploration stage, which is the first step in resource development, with an oil layer found through exploratory drilling and a Drill Stem Test (DST), according to the E&P firm of SK Group.

As a result, the first reservoir has recorded maximum daily production of 4,700 barrels of crude oil and 7.4 million standard cubic feet of gas. An assessment for the second reservoir is currently underway and it is expected that additional crude oil and gas may be found, SK Earthon said.

SK Earthon plans to assess the commercial viability of Block 16-2 through additional exploratory and appraisal drilling. If sufficient commercial viability is confirmed, the company will proceed with the development stage and establish an oil field development plan.

“Vietnam is a promising region for resource development in Southeast Asia as it holds production (Block 15-1), development (Block 15-1/05), and exploration (Block 16-2 and Block 15-2/17) blocks. With the successful discovery of crude oil in Block 16-2, we will strive to continuously create outcomes based on the competitiveness of our E&P business,” said an official from SK Earthon.

SK Earthon began its E&P business in Vietnam by participating as a partner in Block 15-1 in 1998. Since then, the company has secured more blocks, including 15-1/05, 15-2/17, and 16-2. Block 15-1 has been producing oil since 2003 and remains an ongoing operation, while Block 15-1/05 declared commercial viability in 2019 and is currently preparing for oil production, according to the firm.

Block 16-2 is located in the Cuu Long Basin, which is considered a promising exploration area in Vietnam. In 2019, SK Earthon signed an agreement with PVEP, a technical arm of state-owned Petrovietnam, to participate and operate in Block 16-2, and officially became its operator by acquiring a 70% stake of the block in 2020.