SK Corp. & PetroVietnam to Participate in Block 15-1/05 Offshore Vietnam

SK Corporation is participating in a new and highly prospective exploration project in Vietnam. The company has acquired a 25 percent interest in the Vietnam 15-1/05 offshore exploration block under a Production Sharing Contract (PSC) with PetroVietnam and PetroVietnam Exploration and Production Company (PVEP, 75% interest).

The Vietnam offshore block 15-1/05 occupies 3,800 square kilometers in the northwestern part of the CuuLong Basin in Vietnam. It is located near the Vietnam 15-1 block, which already produces 60,000 barrels of oil per day; SK Corporation holds a 9 percent interest in the Vietnam 15-1 block. As a result, prospects for successful exploration in this area are very high. The forward exploration activities (including the seismic acquisition) are scheduled in 2007. This new exploration project will further strengthen the business partnership between SK Corporation and PetroVietnam.

"The region's great potential for further exploration and growth adds significant meaning to SK Corporation's new E&P activities," said Shin Heon-Cheol, President and CEO of SK Corporation, during the signing ceremony with PetroVietnam and PVEP in Hanoi. "We will continue to pursue E&P possibilities to further enhance SK Corporation's global strategy."

SK Corporation is also planning to establish an office in Vietnam in the first half of 2007 to strengthen its local operations and to seek new business opportunities.

SK Corporation's global scope currently includes 25 oil and gas blocks in 14 nations as well as four LNG projects. The company plans to increase its production from 20,000 barrels of oil per day to 100,000 barrels of oil per day by 2010 while boosting its proven reserves of equivalent oil from 440 million barrels to 700 million barrels.