- Signed production-sharing contracts for two offshore exploration blocks near Java Island and the Maluku Islands in Indonesia
- Achieved consecutive success just one month after the oil discovery in the Vietnam 15-1/05 block
- Completes entry into Southeast Asia’s “Big Three” oil-producing nations: Vietnam, Malaysia, and Indonesia
- Strategic clustering approach gains momentum in the region
SK Earthon, the energy exploration and production (E&P) subsidiary of SK Innovation, has successfully expanded its footprint to Indonesia, one of Southeast Asia’s key oil-producing nations. It successfully secured two offshore exploration blocks—Serpang, northeast of Java Island, and Binaiya, near the eastern Maluku Islands—through a competitive bidding process in The Second Indonesia Petroleum Bidding Round 2024, organized by the Indonesian government.
During IPA Convex 2025—Indonesia’s premier oil and gas industry exhibition held at the Indonesia Convention Exhibition (ICE) from May 20 to 22—SK Earthon officially secured exploration rights to two blocks by signing production sharing contracts* with Indonesia’s oil and gas regulatory body, SKK Migas. The signing ceremony was attended by key dignitaries, including President Prabowo Subianto and Minister of Energy and Mineral Resources, Bahlil Lahadalia. Each block covers an area of approximately 8,500 square kilometers.
*Production sharing contract (PCS): A widely used contract model in major oil-producing countries in Asia, where the contractor assumes the costs and risks of exploration and development. When production begins, the output is divided between the government and the contractor according to a pre-agreed ratio, after the contractor recovers its expenses
- Strategic Expansion into Southeast Asia’s Resource Powerhouses
With this latest achievement, SK Earthon has now established a presence in all three of Southeast Asia’s largest oil-producing nations—Vietnam, Malaysia, and Indonesia. This milestone completes the company’s strategic clustering map in the region, a key focus area for its global E&P portfolio.
The Serpang block, located offshore in northeast Java, is one of Indonesia’s most promising hydrocarbon regions, surrounded by highly productive oil and gas fields. SK Earthon holds a 14% stake in the block, with Malaysia’s state-owned oil company, PETRONAS, serving as the operator with a 51% stake, and Japan’s largest oil and gas company, INPEX CORPORATION, owning the remaining 35%.
Meanwhile, the Binaiya block, located offshore near the eastern coast of the Maluku Islands, lies in a region known for its active exploration activities. SK Earthon holds a 22% stake in the block, with Indonesia’s state-owned oil company, Pertamina, serving as the operator with a 56% stake, while Malaysia’s PETRONAS owns the remaining 22%.
- Strategic Expansion into Southeast Asia’s Resource Powerhouses
Over the next three years, SK Earthon plans to conduct geological studies and seismic surveys** in its newly acquired Serpang and Binaiya blocks in Indonesia, aiming to identify drillable structures.
** Seismic survey: A method of resource exploration that involves artificially generating seismic waves and measuring the waves that are reflected or refracted back from underground geological boundaries. This technique is used to analyze the physical properties of subsurface layers and locate underground resources.
This expansion into Indonesia strengthens SK Earthon’s growing presence in Southeast Asia. Earlier in 2025, the company achieved notable oil discoveries in Vietnam’s 15-1/05 and 15-2/17 blocks, located in the prolific Cuu Long Basin, which produces over 50% of Vietnam’s oil and gas. In Malaysia, SK Earthon secured operatorship of the SK427 block, located offshore in Sarawak, in 2022. Last year, the company further expanded its presence by acquiring operatorship of the Ketapu block within the SK427 block area.
Meanwhile, SK Innovation is continuously exploring opportunities to expand its investments in the upstream sector in Indonesia, which is emerging as a resource-rich “land of opportunity” in Southeast Asia. Alongside SK Earthon’s efforts, SK Innovation E&S is pursuing cooperation with SKK Migas through a joint study aimed at enabling cross-border carbon capture and storage (CCS) projects between Korea and Indonesia.
This achievement completes our Southeast Asia clustering strategy, connecting key resource hubs across Vietnam, Malaysia, and Indonesia,” said an SK Earthon representative. “Drawing from our successful resource development projects in Peru and Vietnam, we are committed to unlocking Indonesia’s potential as a significant resource development region.”