SK Earthon Redefines Energy Development in Southeast Asia Through Strategic Clustering

2025. 05. 13 SKInnovation 8min read

■ Advancing resource development through strategic clustering across four oil blocks in Vietnam

■ Achieving breakthroughs in oil discovery and trial production at Blocks 15-1/05 and 15-2/17 in 2025 alone

■ Further exploration and development planned for Blocks 15-1 and 16-2, solidifying SK Earthon’s leading position in Vietnam’s resource sector

■ Establishing Vietnam as a key hub for SK Earthon’s Southeast Asian resource development strategy

SK Earthon, the exploration and production (E&P) of SK Innovation, is set to ramp up commercial oil production at the Lac Da Vang (Golden Camel) field, in Vietnam’s Block 15-1/05, starting next year, significantly boosting oil output in the region

SK Earthon has been actively engaged in Vietnam’s energy resource development since 1998, beginning with an equity investment in Block 15-1. The company now holds stakes in four oil blocks: it serves as a partner in Block 15-1/05 and Block 15-2/17, while operating Block 16-2. Currently, Block 15-1 is the only active production block, generating crude oil since 2003. However, production is set to expand further in late 2026 with the commencement of oil extraction at the Golden Camel field within Block 15-1/05, marking a major milestone in SK Earthon’s Vietnam operations.

The Golden Camel production platform, located 70 kilometers southeast of Ho Chi Minh City, is undergoing final construction phases. The jacket (base structure) is scheduled for completion by July, while the topside (processing and drilling facilities) will be completed by August 2026. With an investment of approximately KRW 400 billion, this platform will serve as a key offshore production base until 2039.

SK Earthon’s Vietnam operations have seen remarkable progress, marked by consecutive oil discoveries. In April this year, oil was discovered at the Lac Da Hong (Pink Camel) field adjacent to Golden Camel, following another successful discovery in January at the Hai Su Vang (Golden Sea Lion) field in Block 15-2/17. These fields, along with the oil-rich Block 16-2 discovered in November 2023, are strategically located in Vietnam’s Cuu Long Basin, known for its high-quality crude reserves. The proximity of these blocks enhances the company’s clustering strategy, enabling faster commercialization and improved operational efficiency.

Table of Contents

◈ Expanding Global Footprint in Vietnam, Southeast Asia’s Resource Powerhouse

Vietnam, with an estimated 4.4 billion barrels of oil and gas reserves, stands as Southeast Asia’s largest oil producer. Among its resource-rich areas, the Cuu Long Basin, Nam Con Son Basin, and Song Hong Basin are the most prominent.

Vietnam serves as a cornerstone of SK Earthon’s Southeast Asian energy resource development, with the company holding production (Block 15-1), development (Block 15-1/05), and exploration (Blocks 16-2 and 15-2/17) blocks, making it a treasure trove for energy projects in the region.

Block 15-1, a key asset for SK Earthon, has been producing crude oil since 2003, generating an average of 3,300 barrels per day (based on SK’s equity share as of 2025). This block is Vietnam’s second highest in cumulative production, with further development planned for the second half of this year.

In Block 15-1/05, SK Earthon declared commercial viability for the Golden Camel structure in 2019 and is on track to begin commercial production in late 2026. Last month, the company also discovered additional oil at the adjacent Pink Camel structure, successfully completing trial production. This linked development is expected to increase production volumes, positioning the block as a new cash cow alongside Block 15-1.

In January 2025, SK Earthon achieved a significant milestone in Block 15-2/17 with the discovery of oil at the Golden Sea Lion structure. Trial production yielded approximately 10,000 barrels per day, underscoring the block’s potential. Its proximity to Block 15-1/05 is expected to enhance development synergies, accelerating commercialization timelines. Industry reports suggest that Block 15-2/17 may hold at least 170 million barrels of contingent resources* equivalent to 18% of South Korea’s annual oil consumption. This discovery could rank as the largest in Vietnam’s Cuu Long Basin over the past decade.
*Contingent resources: oil volumes identified after successful exploratory drilling but requiring further evaluation and development planning for commercialization

Additionally, SK Earthon operates Block 16-2, where it discovered oil in 2023. The company is currently conducting technical evaluations and exploration planning to enhance development potential. Further exploration is scheduled for the first half of this year at the promising Red Hippopotamus structure within the block.

Block 16-2, directly operated by SK Earthon, is where an oil discovery was made through exploratory drilling in 2023. Since the discovery, SK Earthon has been conducting technical assessments and formulating exploration and appraisal plans to fully realize the block’s potential. In the first half of this year, the company plans to carry out additional exploratory drilling at the promising Ha Ma Hong structure within the block.

◈ Charting a ‘Second Peru’ Through Vietnam-Led Clustering Strategy in Southeast Asia

SK Earthon aims to build on the success of SK Innovation’s renowned Peru resource development project by positioning its Vietnam operations as a key cash cow. Peru, where the company started participating in Block 8 in 1996, has become a cornerstone of SK’s energy resource development efforts, with daily production reaching approximately 44,000 barrels as of 2025.

Leveraging this experience, SK Earthon has strategically expanded into Southeast Asia, focusing on Vietnam for its high potential in exploration and development. The company currently operates or partners in four blocks, all located in the resource-rich Cuu Long Basin, which produces over 50% of Vietnam’s oil and gas. This offshore basin is also regarded as one of the most promising resource development areas in Southeast Asia.

The Cuu Long Basin stands out for its high crude oil-to-gas ratio and the production of light crude oil (API 34** or higher) with low sulfur content, making it both highly marketable and profitable. Among SK Earthon’s assets, Block 15-1 is particularly noteworthy, having achieved cumulative production of 400 million barrels by 2023, making it Vietnam’s second-largest producing block.
**API (American Petroleum Institute) gravity is a measure of a crude oil’s density relative to water. Crude oil with an API of 34 or higher is classified as light crude, while medium crude falls between API 30–33, and heavy crude is API 29 or lower. Light crude is more valuable due to its low impurities and ease of refinement.

Furthermore, upcoming developments in the Pink Camel structure of Block 15-1/05 and the Golden Sea Lion structure of Block 15-2/17 are well-positioned to benefit from their proximity to existing production assets. This clustering approach is expected to generate significant synergies, reducing costs and enhancing production efficiency, thereby strengthening Vietnam’s role as a key contributor to SK Earthon’s global resource strategy.

Roh Jeong-yong, Head of SK Earthon’s Southeast Asia Business Office, stated “If the production from three additional blocks is combined with the stable output of Block 15-1, SK Earthon’s Vietnam resource development business has the potential to become a reliable cash cow, continuing the legacy of SK’s success in Peru.”

◈ Expanding Beyond Vietnam to Southeast Asia’s Big Three Oil Producers

The major oil producers in Southeast Asia—Vietnam, Indonesia, and Malaysia—are not only rich in oil reserves but also hold significant natural gas resources, with offshore block development being particularly active.

Building on its proven success in Vietnam’s offshore blocks, along with its operational expertise and advanced technical capabilities, SK Earthon is expanding its resource development clustering strategy across Southeast Asia.

In late 2022, SK Earthon acquired operatorship of Block SK427, located offshore in Sarawak, Malaysia. Shortly after, the company added operatorship of the neighboring Ketapang Block, creating opportunities for greater synergies through linked developments in the area.

At the end of last year, SK Earthon also participated in a government-led bidding round in Indonesia, successfully securing two blocks. The company is now in the final stages of contract negotiations, with an official announcement expected soon.

With these advancements, SK Earthon is expanding its presence beyond Vietnam and Malaysia into Indonesia, Southeast Asia’s largest oil producer. By focusing on the region’s “Big Three” oil-producing nations, SK Earthon is well-positioned to fully realize its clustering strategy and strengthen its foothold in Southeast Asia.

“SK Earthon is steadily expanding its resource development business in Southeast Asia, with Vietnam leading the way. Building on the success of our Vietnam operations, we are committed to achieving similar success in Malaysia and Indonesia to drive SK Innovation’s performance,” said a representative from SK Earthon.

Since entering the resource development business in 1983, SK Innovation affiliates, including SK Earthon have been producing an average of 58,000 barrels of oil and gas per day (in oil equivalent) through participation in 11 blocks across 8 countries and 3 liquefied natural gas (LNG) projects.

[Photos]

(Photo 1) Block 15-1/05, located offshore southeast of Ho Chi Minh City. A drilling rig (right) remains on site, while the production platform (left) is under construction for installation ahead of commercial production in H2 2026.