“Vietnam is a prime example of our country-specific clustering strategy. We plan to expand into nearby regions by leveraging the expertise gained from Block 15-01.”
Choi Jung-won, head of SK Earthon’s Ho Chi Minh office, shared this vision during a Southeast Asia resource development briefing held on May 12 (local time) at the company’s office in Ho Chi Minh City.
SK Earthon aims to achieve oil production levels comparable to its Peru operations within the next decade across Southeast Asia—including China, Vietnam, Malaysia, and Indonesia. The company currently produces approximately 44,000 barrels per day in Peru, combining output from Blocks 8, 88, and 56.
SK Earthon sees significant potential in Southeast Asia to replicate its success in Peru. The region’s top oil-producing countries—Vietnam, Indonesia, and Malaysia—possess abundant oil and natural gas reserves and are actively developing offshore blocks. The company’s clustering strategy, focused on maximizing synergies between adjacent fields, is actively underway in these markets.
In Vietnam, production is scheduled to begin around October 2025 at the Golden Camel structure in Block 15-01/05, following the success of Block 15-01. Exploration is also ongoing in Blocks 15-2/17 and 16-2. In late 2022, the company acquired operating rights to Malaysia’s offshore Block SK427 in Sarawak and secured rights to the Ketapang field within the same region last year, enhancing its ability to develop connected fields. At the end of 2023, SK Earthon also won two new blocks in Indonesia through a government-led bidding process and is now finalizing contracts ahead of an official signing.
Choi emphasized that the clustering strategy involves more than just regional expansion. “When we first began developing Block 15-01, we assumed oil would only be found in the deepest layers. But we later discovered that upper layers were also productive, and we’ve applied these insights to future projects,” he said.
SK Earthon’s confidence in Southeast Asia stems largely from its achievements in Vietnam. “In resource development, the average success rate from exploration to production is about 10%, but SK Earthon has successfully discovered oil on three separate occasions,” Choi noted.
In November 2023, the company struck oil at the Golden Sea Lion structure in Block 16-2. This was followed by discoveries at the Golden Sea Lion structure in Block 15-2/17 in early 2024 and the Red Camel structure in Block 15-01/05 in April. “When I first arrived at the Ho Chi Minh office in 2021, no one really knew who we were,” Choi recalled. “Now, people approach us at conferences, eager to learn how we’re doing what we’re doing.”
SK Earthon also plans to expand its exploration efforts from oil to natural gas. “There are substantial gas reserves in the Nam Con Son Basin, and we’re closely monitoring opportunities there,” Choi added.
Since entering the resource development business in 1983, SK Earthon and its parent company, SK Innovation, have participated in 11 blocks and 3 LNG projects across 8 countries. The group currently produces approximately 58,000 barrels of oil equivalent per day.
