SK earthon And Petros Sign PPC With Petronas After Winning Bid On Block SK427

Petronas has signed a Production Sharing Contract with SK earthon Co., Ltd. and Petroleum Sarawak Exploration & Production Sdn. Bhd. for Block SK427 off the coast of Sarawak. 

SK earthon, a wholly-owned subsidiary of South Korea’s SK Innovation Co., Ltd which is the operator of Block SK427 with 85 percent participating interest while PSEP, the Sarawak-owned oil, and gas company, holds the remaining 15 percent.

Block SK427 is located within the prolific area of Balingian and Tatau hydrocarbon provinces covering an area of 3,349 sq km. The block is situated in a proven hydrocarbon system and has promising hydrocarbon potential to be unlocked. Several significant hydrocarbon discoveries were made in 2021 in the Balingian province near the block, namely Sirung-1 and Hadrah-1 wells. It is located in shallow-waters off the coast of Sarawak, and known as an area that has good exploration prospects as a series of medium- and large-size petroleum resources has been discovered in Sarawak and its surrounding areas. The block also has multiple geological structures* that allow for drilling within the block. Moreover, the area has advantages for the E&P as infrastructure, including a pipeline system already built for exploration blocks nearby which have been operated for oil development

Senior Vice President of Malaysia Petroleum Management Mohamed Firouz said, “We welcome SK earthon to Malaysia’s upstream industry and as a new player, they bring vast experience in exploration and production, garnered from their worldwide exploration activities. The national oil and gas company will also collaborate with the Korean firm in the Carbon Capture and Storage sector, in line with the group’s aspiration to achieve Net Zero Carbon Emissions by 2050.

Myeong Seong, CEO of SK Earthon, emphasized, “By exerting our E&P capabilities and differentiated technologies that have been long accumulated, we will increase our chance of success in this Malaysian block while accelerating our plan to expand the business in Malaysia and Southeast Asia.”

MBR is an annual Malaysia licensing round hosted by MPM which offers investors diverse upstream opportunities, including exploration acreages, discovered resource opportunities, and late-life producing assets.

Petronas, through MPM, manages petroleum arrangements in Malaysia and provides stewardship of upstream petroleum activities.

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