SK Innovation begins oil production in Vietnam

SK Innovation’s energy exploration subsidiary SK Earthon has begun producing crude oil from the Golden Camel structure in Vietnam, marking another milestone in its efforts to expand its upstream energy business in Southeast Asia.

The South Korean company said Tuesday that oil production began in late September at the Golden Camel structure in Block 15-1/05, approximately two years after full-scale development started in 2024.

The offshore block is operated by U.S. energy company Murphy Oil, which holds a 40 percent stake, alongside Vietnam’s state-owned PetroVietnam Exploration Production Corp. (PVEP), which owns 35 percent. SK Earthon holds the remaining 25 percent.

Industry estimates put recoverable resources at the Golden Camel structure at approximately 60 million barrels.

Crude oil is currently being produced steadily through the first production well, with Murphy planning to drill additional wells in stages to increase output.

Once further development is completed, total production from the block is expected to reach as much as 25,000 barrels per day.

The start of production at Block 15-1/05 expands SK Earthon’s production operations in Vietnam beyond Block 15-1, where oil production began in 2003.

The company has also identified an additional oil-bearing layer measuring 56 meters thick at a depth of approximately 3,800 meters in an exploration well at the nearby North White Camel structure, raising the prospect of improved profitability.

SK Earthon has recorded further exploration success at the neighboring Block 15-2/17, reinforcing its resource development presence in Vietnam’s Cuu Long Basin.

The company plans to pursue a clustering strategy that leverages the geographical proximity of its exploration and production blocks to share technology and operational expertise, improve development efficiency and expand earnings from its Vietnamese operations.

“We will continue expanding our business in Vietnam through coordinated development of neighboring blocks and strengthen our position in Southeast Asia’s resource development market,” an SK Earthon official said.