SK Earthon Starts Oil Production in Vietnam

Production platform at the Golden Camel structure in Vietnam's block 15-1/05 (Provided by SK Earthon)  Crude oil production involving a South Korean company has begun in earnest at an offshore block in Vietnam. SK Earthon, the resource development subsidiary of SK Innovation, announced on Oct. 13 that it successfully commenced the first crude oil production at the 'Golden Camel' structure within Vietnam's block 15-1/05. This is an achievement made in about two years since full-scale development commenced in 2024. The operator, Murphy, completed production preparations early and entered into the first crude oil production at the end of September, ahead of the initial plan. The recoverable resources of the Golden Camel structure are estimated at about 60 million barrels. Currently, crude oil is being stably supplied through the first production well, and the plan is to increase production volume by sequentially drilling additional production wells in the future. Once additional development is completed, the daily production volume of the entire block is expected to reach up to 25,000 barrels. Along with the news of crude oil production, news of an additional discovery in a nearby structure was also reported. SK Earthon and Murphy drilled around a depth of about 3,800 meters at the 'Northern White Camel' exploration well near the Golden Camel structure, newly confirming an oil layer with a thickness of 56 meters. This is the third achievement following the Golden Camel and Red Camel structures. SK Earthon will conduct an additional evaluation of the Northern White Camel structure in cooperation with the operator, Murphy, and Vietnam's state-owned oil company PVEP. The policy is to maximize reserves and production volume by pursuing connected development with the previously discovered Golden Camel and Red Camel structures. SK Earthon has prepared a stable profit base by expanding its production bases from block 15-1, which started production in 2003, to this block 15-1/05. The company is continuously producing results in Vietnam's Cuu Long Basin, such as succeeding in discovering crude oil in the nearby block 15-2/17 as well. An SK Earthon official emphasized that the company will strengthen its position in the Southeast Asian resource development market through connected development between adjacent blocks. Currently, SK Earthon holds a 25% stake in block 15-1/05, while Murphy holds 40% and PVEP holds 35%, respectively. Since entering the business in 1983, the SK Innovation affiliate is currently participating in 13 blocks and 5 gas fields in 11 countries worldwide. Through this, it is producing resources of 58,000 barrels per day on a petroleum conversion basis.