SK Implements Cluster Strategy in Southeast Asia to Expand Oil Development Projects

"SK is using a country-based clustering strategy in Southeast Asia, focusing on key regions. Based on the data and know-how gathered from the 15-1 oil field, where we first entered in 1998, we are expanding our oil development activities closer to Vietnam," said Choi Jeong-won, the head of SK Earthon’s Ho Chi Minh office, on the 12th.

On that day, SK Innovation conducted a site tour of the PTSC M&C yard in Vietnam's Vung Tau, where its oil development subsidiary, SK Earthon, is involved. Choi’s comments reflected the company’s commitment to implementing its core-region concentration strategy in Southeast Asia, a promising market for resource development. This strategy is aimed at achieving significant results in resource development and establishing SK as a leading global energy resource development company.

◆'90-Meter-Tall' Oil Refinery Tower Above Vietnam's Seas

At the construction site, welding work was in full swing. The most notable sight was the production platform being built for the Golden Camel structure at the 15-1/05 oil field, which is scheduled to be installed. The structure stands at a total height of 90 meters, with a 60-meter jacket at the bottom and a 30-meter topside. The total weight of the platform is approximately 8,000 tons. The jacket serves as the lower support for the oil production platform, while the topside includes facilities for gas treatment, drilling, and living quarters, installed at the top of the platform.

The company explained that this work is part of the development phase of the Golden Camel project. After exploration and feasibility assessments, the project has entered the stage of preparing for full-scale production. The jacket is expected to be completed by July, while the topside is scheduled to be finished by August of next year.

This production platform, with a total investment of 400 billion KRW, is being constructed over 2.5 years and will serve as a base for offshore oil production until 2039. SK Earthon’s resource development efforts in Vietnam are progressing steadily at each of its oil fields. In April, oil was successfully discovered at the Red Camel structure adjacent to the Golden Camel structure in the 15-1/05 oil field, and earlier in January, oil was also discovered at the Golden Sea Lion structure in the 15-2/17 oil field, marking promising developments.

These fields, like the 16-2 oil field, where oil was discovered in November 2023, are located in the Vietnam Cuu Long Basin and are confirmed to contain large reserves of high-quality crude oil. As a result, rapid commercialization through coordinated development with neighboring fields is expected.

◆"SK Earthon Aims to Produce 40,000 Barrels of Crude Oil Daily in Southeast Asia Within 10 Years"

There is a strong reason behind SK Earthon’s choice of Vietnam as its Southeast Asian resource development hub. Vietnam, the largest oil producer in Southeast Asia, is known to have around 4.4 billion barrels of resources, including oil and gas. The areas with the highest resource reserves include the Cuu Long Basin, the Nam Con Son Basin, and the Song Hong Basin.

Vietnam is considered a key base for SK Earthon’s energy resource development in Southeast Asia, with the company holding fields for production (15-1 oil field), development (15-1/05 oil field), and exploration (16-2 oil field, 15-2/17 oil field).

Notably, the 15-1 production field, which began producing oil in 2003, is SK Earthon’s core asset in Vietnam, producing an average of approximately 3,300 barrels per day (as of 2025) based on SK’s stake. This field is also the second-highest cumulative producer in Vietnam, with plans for additional infrastructure development in the second half of this year.

An SK Earthon official said, “We are pushing forward with our Southeast Asia resource development business, with Vietnam at the forefront. Based on our success in Vietnam, we will succeed in resource development in Malaysia and Indonesia, which will drive SK Innovation’s performance.”

The company aims to produce 40,000 barrels of crude oil daily, equivalent to Peru's oil production levels, in Southeast Asia, including China, Vietnam, Malaysia, and Indonesia, within the next decade. SK Innovation's energy resource development in Peru began in 1996 with the acquisition of stakes in the 8th oil field, followed by expansions into the 88th and 56th fields. SK Earthon plans to continue identifying new resource development markets based on its successful experience in Peru.

No Jung-yong, SK Earthon’s Southeast Asia business head, commented, "SK Earthon’s resource development in Vietnam, based on stable production from the 15-1 oil field, is expected to play a key role as a stable cash cow for the company when production from the three major fields is added, continuing SK Earthon’s success in Peru."

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