SEOUL, Oct. 13 (Yonhap) -- SK earthon Co., a South Korean oil exploration and production (E&P) company, said Tuesday oil production has recently begun at an offshore field in Vietnam where it holds a stake.
U.S.-based Murphy Oil Corp., the operator of Block 15-1/05, began production at the Lac Da Vang field in the Cuu Long Basin late last month, SK earthon said in a press release.
SK earthon holds a 25 percent stake in the block, having invested in the project in 2007. Murphy Oil and Vietnam's state-run PetroVietnam Exploration Production Corp. (PVEP) hold 40 percent and 35 percent stakes, respectively.
The block is estimated to contain total oil reserves of 60 million barrels, with production expected to reach up to 25,000 barrels per day when the project is fully developed, the company said.
"We will continue to expand its oil exploration and development activities in Vietnam to secure a stable energy supply amid rising geopolitical tensions and supply chain disruptions," a company official said.
SK earthon has been expanding its E&P operations in China and Southeast Asia to help improve the profitability of its parent company, SK Innovation, a major South Korean refiner. Since 2022, SK earthon has generated more than 1 trillion won (US$748 million) in annual revenue from its overseas E&P projects.
SK earthon is a wholly owned subsidiary of SK Innovation, the refining arm of SK Group, a conglomerate with interests spanning semiconductors to construction.
This undated file photo provided by SK earthon shows the production platform at the Lac Da Vang field in Block 15-1/05, Vietnam. (PHOTO NO FOR SALE) (Yonhap)
kyongae.choi@yna.co.kr
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