SK Earthon to start the exploration of block SK 427

SK Earthon has signed the Production Sharing Contract (PSC) with Malaysia’s state-owned oil and gas company Petronas (Petroliam Nasional Berhad) and PSEP (Petroleum Sarawak Exploration and Production Sdn., Bhd.) after winning the bid on Block SK 427, an oil block located off the coast of Sarawak region last year.

This is the first time SK Earthon successfully won a bid for the operatorship of an oil block in Malaysia. By securing the mineral rights and operatorship, the company is now ready to start the exploration of Block SK 427 in full swing.

The mineral rights are property rights acquired for exploiting a particular area on land or at sea, authorized by a legitimate procedure, such as winning a bid, for natural resources, such as oil and gas, that the plot harbors. According to the acquisition of the mineral rights, a party that signs the mineral rights contract with an oil-producing country is referred to as an operator.

SK Earthon acquired 85% participating interest in Block SK 427, and, as an operator, it is responsible for the exploration, development, and production of the block. SK Earthon will be partnering with PSEP, which owns the remaining 15%, to carry out exploration. The final decision on the development and production of the block will be made by exploration results over the next four years.

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