SK earthon, a subsidiary of SK innovation dedicated to resource development, announced on Nov. 22 that it has started the shipment of crude oil produced from the Lufeng 12-3 oil field in Block 17/03 located in the northeastern South China Sea. The production of this crude oil, which commenced in September, marks a significant achievement for SK earthon.
The oil was loaded onto a tanker via surface and subsea hoses from a floating production, storage, and offloading (FPSO) unit. The shipment, amounting to approximately 400,000 barrels, represents about 15% of South Korea’s daily oil consumption.
During a visit to the site, Kim Jun, vice chairman of SK innovation, and Myeong Seong, president of SK earthon, acknowledged the hard work of the team members who overcame numerous challenges over the past eight years. They also inspected the oil production platform and the FPSO facility in the 17/03 Block.
Kim Jun highlighted the significance of the 17/03 Block, noting it as SK earthon’s first successful case of managing the entire process from exploration to development, production, and shipment with its own technology. He mentioned that this year marks 40 years of SK Innovation’s involvement in resource development and 34 years of operational participation, celebrating the culmination of persistent efforts despite numerous failures.
Block 17/03 is a landmark project for SK earthon, marking its first successful oil production endeavor. The company signed a contract with China National Offshore Oil Corporation in 2015 and discovered oil during exploratory drilling in 2018. After completing various development stages, including oil field evaluation and production platform construction, SK earthon started oil production in September.
The daily production capacity of Block 17/03, located about 300 km from Shenzhen City, is approximately 29,500 barrels. SK earthon expects to generate revenue of about 500 billion won from this block next year.
President Seong of SK earthon emphasized the company’s commitment to continuous and stable oil production in Block 17/03 and to efforts aimed at reducing carbon dioxide emissions during the production process.