Eni revealed as buyer of block offshore Vietnam

Italian oil and gas company Eni has revealed itself as the buyer of KrisEnergy’s Block 115/09, located offshore central Vietnam, following the completion of the acquisition.

Block 115/09, offshore Vietnam; Source: KrisEnergy
Block 115/09, offshore Vietnam
Block 115/09, offshore Vietnam; Source: KrisEnergy

Eni said on Monday that, through its affiliate Eni Vietnam, it has completed the acquisition from KrisEnergy of a 100 per cent participating interest and the operatorship in Block 115/09.

The area is adjacent to Block 114 where the operator Eni Vietnam and its partner Essar Exploration and Production Limited have recently announced the Ken Bau gas and condensates discovery currently under appraisal.

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The new acreage also borders with Block 116, also operated by Eni Vietnam with a 100 per cent participating interest.

The block covers an area of 7,382 Km2, with a water depth ranging from 90m to 1,000m.

Eni noted that its presence in the country is further strengthened with this acquisition, consolidating its position in the recently discovered Ken Bau like play, in line with its strategy of expanding of its gas portfolio in the Asian Far East.

Eni has been present in Vietnam since 2013, and currently operates five blocks all located in the underexplored Song Hong and Phu Khanh basins, offshore central Vietnam.

KrisEnergy already announced the completion of the farm-out agreement for its entire working interest in Block 115/09 at the end of March 2021.

The two companies entered into the initial farm-out agreement back in February 2020. At the time, KrsiEnergy only stated that the agreement was with an unnamed “major international oil and gas company”.

The agreement was made for a nominal cash consideration and considered that the transfer of the exploration block reduces the company’s liabilities and mandatory work commitments comprising a 3D seismic acquisition program of at least 850 square kilometres along with the processing of the data and the drilling of one exploration well.

The farm-out agreement had an initial long stop date of 30 June 2020.

Four extensions of the long stop date later, the acquisition has now been completed.