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SK Earthon wins rights to explore Malaysia's oil-rich Ketapu Cluster

Published: 08 Sep. 2024, 17:32

SARAH CHEA
[email protected]

A map of the Ketapu Cluster in Sarawak, Malaysia [SK EARTHON]

SK Earthon won the rights to explore and operate the Ketapu Cluster in Sarawak, Malaysia, with vast crude oil and natural gas reserves.

The resource development subsidiary of SK Innovation said Sunday it had signed a contract with Petronas, Malaysia's state-run oil company, to hold 85 percent of the Ketapu Cluster including operatorship. The remaining 15 percent will be held by Petroleum Sarawak Exploration and Production, a wholly owned unit of Petronas.

The deal comes as SK Earthon in October was selected as the winning bidder for the Ketapu Cluster by the Malaysian government.

The Ketapu Cluster is a mining area with confirmed reserves of crude oil and natural gases. SK Earthon is expected to start production in 2031.

The Ketapu deal is the second set of exploration rights SK has earned in Malaysia since it in 2022 gained the rights to explore and develop the SK427 block in the Southeast Asian country.

SK Earthon generated 296.5 billion won ($221.7 million) in operating profit in the first half of 2024, becoming the third-largest profitable business to SK Innovation after its oil refining and lubricant businesses.

Since 1983, SK Earthon produces roughly 57,000 barrels of oil and gas every daily in around 10 mining areas in eight countries and three liquefied natural gas projects.

BY SARAH CHEA [[email protected]]