Seoul: (Thursday, May 22) SK Earthon Co., the energy exploration arm of South Korea’s SK Group, has acquired the rights to explore two offshore oil and gas blocks in Indonesia.
The company recently finalized production sharing contracts (PSCs) for the Serpang block near Java Island and the Binaiya block near the Maluku Islands, in collaboration with Indonesia’s oil and gas regulatory authority. The signing ceremony was attended by Indonesian President Prabowo Subianto and Energy and Mineral Resources Minister Bahlil Lahadalia.
Under the PSC framework, contractors assume the financial risks and costs of exploration and development while sharing production output with the host country. Each of the newly acquired blocks spans approximately 8,500 square kilometers—about 14 times the size of Seoul.
The Serpang block is widely regarded as one of Indonesia’s most promising petroleum regions, with nearby sites already producing oil. Estimates suggest the presence of up to 1.2 billion barrels of undiscovered oil. SK Earthon holds a 14 percent stake in the Serpang block, alongside Malaysia’s Petronas (51 percent) and Japan’s Inpex (35 percent).
The Binaiya block, located in eastern Indonesia, is believed to contain as much as 6.7 billion barrels of undiscovered oil and 15 trillion cubic feet of natural gas. SK Earthon holds a 22 percent stake, while Indonesia’s state-owned Pertamina owns 56 percent, and Petronas retains the remaining 22 percent.
To advance exploration, SK Earthon plans to conduct geological studies and seismic surveys over the next three years to assess potential drilling sites.
