SK Earthon, SK Innovation’s subsidiary for petroleum exploration and production, has signed a Production Sharing Contract (PSC) with PETRONAS, through Malaysia Petroleum Management (MPM) for the Ketapu Cluster, located off the coast of Sarawak, offshore Malaysia.
SK Earthon was selected as the winning bidder for the Ketapu Cluster through Malaysia Bid Round (MBR+) Round 1, organized by MPM in October 2023. The company will hold 85% participating interest in the PSC, including operatorship, while the remaining 15% will be held by PSEP (Petroleum Sarawak Exploration and Production Sdn Bhd), a wholly owned subsidiary of PETROS, which is the state-owned company of Sarawak, Malaysia.
The Ketapu Cluster comprises four discovered resource opportunities that have identified oil and gas discoveries but have not been developed yet. It is located within the SK427 block area, for which SK Earthon acquired operation rights in April 2022.
PETRONAS has granted SK Earthon a four-year development period and a 20-year production period. The company plans to conduct the development feasibility study by 2025.
Potential synergies between the SK427 block and the Ketapu Cluster are also expected. SK Earthon plans to explore development opportunities by leveraging the connection between these blocks.
This contract is a significant achievement as it recognizes SK Earthon’s technical and operational capabilities on an international level. It also marks the establishment of SK Earthon’s position and growth foundation as an operator in Malaysia, following successes in China and Vietnam.
