SK Earthon Targets Production in 2031 from Ketapu Cluster Near Existing Malaysian Acreage
South Korea’s SK Earthon has secured a production sharing contract (PSC) for the Ketapu Cluster Discovered Resource Opportunities (DRO) offshore Sarawak, East Malaysia, further expanding its upstream operations in both Malaysia and the broader region.
The Ketapu Cluster contains untapped oil and gas discoveries. Petronas has granted SK Earthon a four-year development period, followed by a 20-year production term. The company aims to complete a development feasibility study by 2025, with exploration and appraisal drilling expected in the near future. Production is tentatively scheduled to begin in 2031, contingent on successful development activities.
The Ketapu Cluster was offered as part of the first Malaysia Bid Round+ (MBR+), launched by Petronas Malaysia Petroleum Management in October of last year. The cluster is located near offshore Block SK 427, which SK Earthon—an exploration and production affiliate of SK Innovation—acquired in April 2022. The company plans to explore potential synergies between Block SK 427 and the Ketapu Cluster, including joint development opportunities.
Under the PSC terms, SK Earthon holds an 85% operating interest in the Ketapu Cluster, with the remaining 15% held by Petroleum Sarawak Exploration and Production (PSEP), a wholly-owned subsidiary of Sarawak’s state oil company, Petros.
SK Earthon described the award as a “significant achievement,” underscoring the company’s technical and operational capabilities on the international stage. SK Innovation, along with its affiliates, has over 40 years of experience in the upstream oil and gas sector. Currently, they are involved in 10 blocks and three liquefied natural gas projects across eight countries, with a combined production of approximately 57,000 barrels of oil equivalent per day.
This win places SK Earthon in a prime position as an operator in the region. Additionally, independent energy company Longboat Energy is anticipated to secure the DEWA DRO PSC, another asset off the Sarawak coast, which was also part of the MBR+ acreage release.