SEOUL, May 22 (Yonhap/APP): SK earthon Co., the energy exploration unit of South Korea’s SK Group, said Thursday it has won exploration rights to two offshore oil and gas blocks in Indonesia.
The company said it recently signed production sharing contracts (PSCs) for the Serpang block near Java Island and the Binaiya block near the Maluku Islands with Indonesia’s oil and gas regulatory body, in a ceremony attended by Indonesian President Prabowo Subianto and Energy and Mineral Resources Minister Bahlil Lahadalia.
Under a PSC, the contractor bears the cost and risk of exploration and development, and shares production output with the host government. Each block spans approximately 8,500 square kilometers, roughly 14 times the size of Seoul.
The Serpang block is considered one of Indonesia’s most promising petroleum regions, with nearby blocks already in active production. Its undiscovered petroleum resources are estimated at up to 1.2 billion barrels of oil.
SK earthon holds a 14 percent stake in the Serpang block, while Malaysia’s state-owned Petronas and Japan’s Inpex own 51 percent and 35 percent stakes, respectively.
The Binaiya block is located in eastern Indonesia and is estimated to hold up to 6.7 billion barrels of undiscovered oil and 15 trillion cubic feet of natural gas. SK earthon holds a 22 percent stake in the Binaiya block, with Indonesia’s state oil company Pertamina holding 56 percent and Petronas owning the remaining 22 percent.
The South Korean firm said it will conduct geological analysis and seismic surveys over the next three years at both sites to identify drilling prospects for future development.