* SK Innovation(operator) declared oil discovery in the South China Sea
* It confirmed production of up to 3,750 bpd from well test, and plans to further assess reserve size to confirm project commerciality
* “With this significant achievement born out of 36 years of technical expertise, SK Innovation will focus on the South China Sea to build a platform for future growth”
SK Innovation (CEO Jun Kim, www.SKinnovation.com) announced on
February 21, 2018 that it made oil discovery in the PRMB block 17/03 in the
South China Sea.
This marks SK Innovation’s first discovery
in the area since its decision to push forward with offshore oil exploration
projects as an operator in the South China Sea.
Since its signing of block
17/03 PSC in February 2015, SK Innovation has been focusing its technical
capabilities on geological and geophysical surveys. In December 2017, it
drilled its first exploration well into 2,014m depth and found 34.8m net oil
pay. The oil production of the well was tested up to 3,750 barrels per day.
SK Innovation plans to
drill follow-up appraisal wells to assess reserves and commerciality of the
SK Innovation currently
holds 80% working interest in the block, and 20% is held by CNOOC, the Chinese
stated-owned company specializing in offshore oil and gas.
A spokesperson from SK
Innovation said, “SK Innovation was the first private company in Korea to step into
the upstream oil and gas business, and the company’s
focus on technical expertise ever since its beginning in 1983 led to this
significant milestone. Once the commerciality of the project in PRMB is
secured, SK Innovation will use it as a platform of growth into other areas in
the South China Sea”
SK Innovation first
started its oil and gas business in 1983 by acquiring interests in Karimun
Block, Indonesia, and has been focused mainly on conventional oil and gas in
areas such as Peru, Vietnam and Middle East. In 2014, it acquired two
unconventional oil and gas assets in the U.S. which currently produce around
2,500 boepd. SK Innovation’s net reserves amount to 530mmboe with daily production
at 55kboe from 13 blocks in 9 countries globally. In the South China Sea, SK
Innovation holds operatorship (exploration) for two additional PSCs – 04/20 and 17/08.
of PRMB block 17/03 in the South China Sea]
SK Innovation’s oil
discovery was made in block 17/03. SK Innovation holds additional PSCs in the
nearby blocks - 04/20 and 17/08