SK earthon acquires 34% stake in Indonesian oil block

SK earthon, a Korean oil exploration and production company, said Monday it has acquired a 34 percent stake in a potential oil block in Indonesia as part of its efforts to expand overseas E&P activities.

The North Ketapang block, marked with an orange triangle, near Java Island in Indonesia. [SK EARTHON]

SK earthon, a Korean oil exploration and production (E&P) company, said Monday it has acquired a stake in a potential oil block in Indonesia as part of its efforts to expand overseas E&P activities.

SK earthon said it has taken over a 34 percent stake in the North Ketapang block from Malaysia's Petronas North Ketapang, joining the project alongside two existing partners.

The other stakeholders are Petronas North Ketapang, which holds a 51 percent stake, and Indonesia's state-run oil company PT Pertamina Hulu Energi North Ketapang, which owns the remaining 15 percent in the block located northeast of Java Island.

"The latest investment is part of the company's strategy to establish a resources development cluster in Southeast Asia. SK earthon aims to develop Indonesia as its E&P hub in the region, where the company is also carrying out projects in Vietnam, China and Malaysia," a company representative said.

SK earthon said it expects business synergies through the partnership as the two other operators have decades of experience in E&P operations in Indonesia.

In May, the firm secured stakes in Serpang and Binaiya oil blocks through auctions held by the Indonesian government.

The company has been expanding its E&P presence in China and Southeast Asia to bolster the earnings of its refining parent company. Since 2022, it has generated more than 1 trillion won ($716.6 million) annually from overseas E&P projects.

SK earthon is a wholly owned energy unit of SK Innovation, Korea's leading refiner and a key affiliate of SK Group, whose businesses range from semiconductors to construction.

Yonhap