SK Earthon, the energy resource development unit of SK Innovation, has acquired a 34% stake in the North Ketapang exploration block offshore Indonesia, expanding its upstream presence in Southeast Asia.
The stake was acquired from Petronas North Ketapang, leaving Petronas with a 51% interest and Indonesia’s state-owned PT Pertamina Hulu Energi North Ketapang with the remaining 15%. The partners plan to begin exploration drilling within the year.
Located offshore northeast of Java Island, the North Ketapang block is regarded as one of Indonesia’s more prospective exploration areas, with recent nearby activity resulting in oil discoveries in new geological formations beyond existing production layers.
Petronas North Ketapang, which operates the block, has more than 30 years of development experience in the region, while Pertamina Hulu Energi brings local operational expertise. SK Earthon said the partnership is expected to create synergies in exploration and development.
The acquisition follows SK Earthon’s successful bids earlier this year for stakes in the Serpang and Binaiya blocks, awarded through an Indonesian government tender. With North Ketapang, the company now holds interests in three Indonesian blocks, two of which are located offshore northeast of Java.
“Securing a stake in the North Ketapang block is part of our clustering strategy for resource development in Southeast Asia. Alongside our active projects in Vietnam, China, and Malaysia, we aim to develop Indonesia into a key global hub for resource development,” an SK Earthon representative said.
SK Innovation is also pursuing carbon capture and storage projects in Indonesia through its affiliate SK Innovation E&S, the company noted.