SK has first oil find in the South China Sea
SK Innovation has achieved its first oil discovery as an operator in the South China Sea.
The company started drilling its first exploration well last December on the block 17/03 PSC in the Pearl River Mouth basin, which was awarded in February 2015.
The well encountered 34.8 m (114 ft) net oil pay and tested at up to 3,750 b/d.
SK Innovation plans follow-up appraisal wells to assess the volume of the reserves and the commerciality of a potential development.
The company has an 80% interest in the block, and CNOOC has the remaining 20%.
A spokesperson from SK Innovation said: “Once the commerciality of the project in PRMB is secured, SK Innovation will use it as a platform of growth into other areas in the South China Sea.”
The company also operates blocks 04/20 and 17/08 in the region.