Core Insights - SK Earthon Co., a subsidiary of SK Innovation, is selling its stake in three offshore oil blocks in Vietnam to strengthen its financial position, with the assets valued at approximately 200 billion won (U.S. $140 million) [1][2] Group 1: Company Overview - SK Earthon has been operating in Vietnam since 1998, managing four offshore blocks in collaboration with Murphy Oil Corp. and PetroVietnam Exploration Production Corporation (PVEP) [2] - The company holds a 25% stake in the portfolio, while Murphy Oil and PVEP own 40% and 35%, respectively [2] - The sale does not include Block 15-1, which is SK Earthon's flagship asset and Vietnam's second-largest oil producer, having extracted over 400 million barrels by the end of 2023 [2] Group 2: Asset Details - The three blocks for sale include Block 15-2/17, currently in the exploration stage, estimated to contain over 170 million barrels of recoverable oil, equivalent to about 18% of South Korea's annual petroleum consumption [3] Group 3: Strategic Rationale - Analysts suggest that the divestment is a strategic move by SK Earthon to mitigate risks and recover capital amid rising costs and lengthy timelines in global resource development [4] - Exploration and production projects typically require substantial upfront investments, often in the hundreds of millions of dollars, and can take over a decade to generate returns [4] Group 4: Market Considerations - Industry officials warn that valuation and approval challenges may complicate the sale process, particularly for exploration-stage assets, which are harder to price compared to producing oil blocks [5] - The sale will also require consent from SK's joint venture partners, potentially slowing negotiations [5] - The sale process is being managed by SC Securities Co., with expectations of interest from regional energy investors and private equity funds [5]

Core Insights - Petrobras is shifting its strategic focus towards Africa, particularly targeting countries like Ivory Coast, Angola, Nigeria, and Namibia, to leverage geological similarities with Brazil's offshore basins [1][15][17] - The company has submitted an interest for nine offshore oil blocks in Ivory Coast, indicating a strong commitment to establishing a presence in West Africa [2][9] - A partnership with Angola's Sonangol aims to enhance Petrobras' regional positioning and facilitate knowledge transfer in offshore exploration and sustainable energy technologies [4][5][16] Expansion Strategy - The geographic location of Ivory Coast is seen as advantageous due to Petrobras' existing experience in similar geological settings, which could lead to successful outcomes in Africa [3][10] - Nigeria is identified as a key area for investment due to its untapped deepwater blocks and favorable reforms in the petroleum sector [6][15] - Namibia is emerging as a promising frontier for exploration, with Petrobras aiming to capitalize on first-mover advantages in this region [7][15] Geological Synergy - The geological similarities between Brazil and Africa, stemming from their historical connection as part of the supercontinent Gondwana, provide Petrobras with a competitive edge in exploration [8][10] - The company’s success in Brazil's offshore pre-salt layers is expected to be replicable in Africa's basins, enhancing its exploration capabilities [8][10] Production and Reserves - Petrobras' crude oil production was stable at 2.77 million barrels per day in Q1 2025, reflecting a slight decline of 0.2% year-over-year, while proven oil and gas reserves increased by 500 million barrels to 11.4 billion barrels [11][12] - The company is actively seeking to acquire new overseas reserves to ensure long-term growth as domestic fields mature [12][14] Acquisition Plans - Petrobras is in negotiations with global supermajors like ExxonMobil, Shell, and TotalEnergies for potential acquisitions of stakes in existing oil fields in Africa, which would provide immediate access to production assets [13][14] - This dual strategy of inorganic reserve replacement and organic exploration aligns with Petrobras' ambitions to enhance its global reserve metrics [14] Long-term Vision - The expansion into Africa is framed as a long-term strategy for Petrobras, positioning the company as a significant player in the Atlantic petroleum frontier [15][17] - The partnership with Sonangol includes provisions for cleaner production technologies, aligning with Petrobras' commitment to sustainable growth [16]