Oil Development with China
SK Innovation is proceeding with the petroleum development business in the South China Sea.
The company announced on Feb. 11 that it will develop two blocks in the South China Sea, along with China National Offshore Oil Corporation (CNOOC). SK Innovation Exploration & Production (E&P) President Kim Ki-tae signed a contract with CNOOC President in Shenzhen, China on Feb. 10 (local time).
SK Innovation and CNOOC will respectively hold 80 percent and 20 percent of the costs in the exploration stage. The company did not make public its investment costs. After the development phase, CNOOC will own a 60 percent stake of the commercial interest, while SK Innovation will own the rest. This is because of China’s legal regulations that Chinese firms need to hold more than 50 percent of a stake in the case of business within Chinese territory.
Meanwhile, SK Innovation is currently involved in oil exploration and development in 24 locations in a total of 16 nations, as well as four liquefied natural gas projects.