SK Innovation strikes oil off Hong Kong

SK Innovation has encountered oil in Pearl River Mouth Basin Block 17/03 offshore China, local media reported on Thursday.

The South Korean company operates the block, alongside the nearby Block 04/20, following an agreement struck with China National Offshore Oil Corporation in 2015. Both blocks are located in the South China Sea, near Hong Kong, at depths of 50-100 metres.

Its first exploration well in the block, drilled in December 2017, flowed up to 3,750 bopd, the Korea Times reported. SK Innovation holds an 80% stake in the exploration licence though China National Offshore Oil Corporation has the option to increase its stake in the event of a commercial discovery.

“Once the commercial viability of the project in Pearl River Mouth Basin is secured, SK Innovation will use it as a platform of growth into other areas in the South China Sea,” company representatives told the newspaper.