SK Innovation discovers oil in South China Sea

By Lim Chang-won Posted : February 21, 2018, 16:31 Updated : February 21, 2018, 16:31

[Courtesy of SK Innovation]


SEOUL, Feb. 21 (Aju News) -- SK Innovation, a major oil company in South Korea, announced the discovery of crude oil Wednesday in a block in the South China Sea. This marked the company's first discovery in the area.

SK Innovation, a subsidiary of South Korea's SK group, said that during its test production at the PRMB (Pearl River Mouth Basin) block 17/03, it was able to produce up to 3,750 barrels of oil per day. PRBM is an extensional sedimentary basin the northern part of the South China Sea.

This marked SK Innovation's first oil discovery in the area. In December last year, the company drilled its first exploration well in PRMB block 17/03. It plans to drill follow-up appraisal wells to assess reserves and commerciality of the project.

SK Innovation and China National Offshore Oil Corporation (CNOOC) have signed a series of contracts to develop blocks in the South China Sea. Once the commerciality of the project in PRMB is secured, SK Innovation will use it as a platform for growth into other areas in the South China Sea.

SK Innovation plans to buy additional blocks in Vietnam, China and the United States.
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