▲ This image provided by SK Innovation Co. shows the location of Block SK427 in Malaysia. (PHOTO NOT FOR SALE) (Yonhap)

SK Innovation-Malaysia deal

SK Innovation's unit signs Malaysian oil block production contract

SEOUL, April 24 (Yonhap) -- SK Innovation Co., South Korea's leading refiner, said Sunday its energy unit has signed a production sharing contract with Malaysian companies for a local oil block.

SK earthon Co. recently signed the deal with Malaysia's state-run oil company Petroliam Nasional Berhad (Petronas) and Petroleum Sarawak Exploration and Production Sdn., Bhd. (PSEP) for Block SK427 off the coast of Sarawak, the company said in a statement.

SK earthon invested in an 85 percent stake in the exploration block, and as an operator, is responsible for exploration, development and production from the block. PSEP, the Sarawak-owned oil and gas company, holds the remaining 15 percent stake, it said.

"We will increase our chance of success in this Malaysian block by using our capabilities and technical excellence while accelerating our plan to expand business in Southeast Asia," SK earthon CEO Myeong Seong said in the statement.

The company didn't provide the value of its investment.

The participating companies will make a final decision on the development of and production from the block depending on exploration results over the next four years, it said.

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