South Korea’s SK Earthon, the energy exploration and production (E&P) subsidiary of SK Innovation, has expanded its offshore acreage in Indonesian waters with a stake in a block, which is expected to see drilling activity before the year ends.
Thanks to the acquisition of a 34% stake in the North Ketapang block from Petronas North Ketapang , a subsidiary of Malaysia’s state-owned energy giant Petronas , SK Earthon now holds interests in three Indonesian blocks, including Serpang and Binaiya , enhancing synergies in resource development.
The Korean firm will jointly conduct resource exploration with Petronas (operator, 51% stake) and PT Pertamina Hulu Energi North Ketapang (15% stake). The partnership among the three companies is expected to create strong synergies in resource exploration and development. The partners plan to begin exploration drilling this year.
Located offshore northeast of Java Island, the North Ketapang block is regarded as one of the most promising resource development blocks in Indonesia, said to be a leading oil-producing country in Southeast Asia.
The recent exploration activities near the block have discovered oil in new geological formations beyond the existing production layers, highlighting the area’s high potential for further oil discoveries.
Aside from expanding its upstream investments in Indonesia, SK Innovation is also actively pursuing Korea-Indonesia cooperation in carbon capture and storage (CCS) projects through its affiliate SK Innovation E&S.
Commenting on the acquisition, an SK Earthon representative highlighted: “Securing a stake in the North Ketapang block is part of our clustering strategy for resource development in Southeast Asia.
“Alongside our active projects in Vietnam, China, and Malaysia, we aim to develop Indonesia into a key global hub for resource development.”