Seoul: SK earthon Co., a South Korean oil exploration and production company, announced its acquisition of a 34 percent stake in the North Ketapang block in Indonesia. This move is part of the company's broader strategy to expand its exploration and production activities internationally.

According to Yonhap News Agency, SK earthon took over the stake from Malaysia's Petronas North Ketapang Sdn. Bhd., joining the project with two existing partners. Petronas North Ketapang holds a 51 percent stake, while Indonesia's state-run PT Pertamina Hulu Energi North Ketapang owns the remaining 15 percent. The North Ketapang block is situated northeast of Java Island.

A company official stated that this investment aligns with SK earthon's strategy to establish a resources development cluster in Southeast Asia. The company aims to make Indonesia its hub for exploration and production activities in the region, where it is also involved in projects in Vietnam, China, and Malaysia.

SK earthon anticipates business synergies through this partnership, benefiting from the extensive experience of the other operators in Indonesia's exploration and production sector. This move follows SK earthon's acquisition of stakes in the Serpang and Binaiya oil blocks in May through Indonesian government auctions.

The company has been expanding its exploration and production presence in China and Southeast Asia to enhance the earnings of its parent company, SK Innovation. Since 2022, SK earthon has generated over 1 trillion won (approximately US$716.6 million) annually from its overseas exploration and production projects.

SK earthon operates as a wholly owned energy unit of SK Innovation, a leading refiner in South Korea and a key affiliate of SK Group, which has interests ranging from semiconductors to construction.