South Korea’s SK Innovation has boosted its upstream portfolio with a new exploration block offshore Sarawak, which marks the company's Malaysian debut.

The country’s national oil company and industry regulator Petronas on Friday signed a production sharing contract with SK’s wholly owned subsidiary SK earthon and partner Petroleum Sarawak Exploration & Production (PSEP) for shallow-water Block SK 427.

Near shore Block SK 427 covers 3349 square kilometres within the prolific area of the Balingian and Tatau hydrocarbon provinces. The block is situated in a proven hydrocarbon system and has promising hydrocarbon potential to be unlocked, noted Petronas.