SK Earthon, a subsidiary of SK Innovation, is selling its stake in three oil blocks in Vietnam valued at about 200 billion won (US$140 million) as part of efforts to strengthen its balance sheet, The Korean Economic Daily (KED) has reported → view source.
The company has been involved in four blocks with Murphy Oil of the United States and PetroVietnam Exploration Production (PVEP) since 1998, holding a 25 percent interest.
Murphy Oil owns 40 percent and PVEP 35 percent.
Its flagship Block 15-1, which has produced over 400 million barrels and is Vietnam’s second-largest cumulative oil producer, is not part of the sale.
One of the exploration blocks, 15-2/17, is estimated to contain more than 170 million barrels of recoverable oil—around 18 percent of South Korea’s annual petroleum consumption.
SK Earthon has reportedly put its share in the project up for sale to “enhance its financial health”, according to KED.
About Vietnam’s crude oil industry
More broadly speaking, oil projects in Vietnam face mounting challenges from regulatory delays, aging offshore fields, and rising exploration costs, compounded by financing difficulties as global investors pivot toward cleaner energy.
Complex approval processes, maturing reserves in basins like Cuu Long, and high technical demands in deepwater areas have slowed development.
Geopolitical tensions in the South China Sea further deter foreign operators, while Vietnam’s net-zero commitments and inconsistent energy policies create uncertainty about the long-term role of fossil fuels.
Aging infrastructure and limited offshore capacity add to operational and logistical risks.
Of note, crude oil production in Vietnam fell 1.84 percent month-on-month to 690,000 tonnes in September.
However, for the first nine months of the year, production totalled 6.03 million tonnes, up 6.3 percent from the same period in 2024.