Essar Sells Stake in Offshore Vietnam Block to Eni

Essar Sells Stake in Offshore Vietnam Block to Eni

Italy’s Eni has signed an agreement with the Indian company Essar for the acquisition of 50% and the operatorship of exploration block 114, located offshore in Vietnam’s Song Hong Basin.

The exploration activities in the newly acquired block include the acquisition of a 3D seismic survey and the drilling of two wells. The block, which is approximately 5,900 square kilometers, has great potential and is located in an area where there have recently been significant exploration successes in nearby blocks.

“The reduction in Essar Energy’s stake in block 114, which was previously 100 per cent, is in line with the strategy for its exploration and production business of introducing strategic partners to help manage risk and of focusing on the development of its core assets,” explained Essar in a statement.

With this acquisition, Eni reinforces its presence in the country as part of its strategy of expansion in the Far East in areas with significant mineral potential. Eni signed two acquisition agreements on June 25 for blocks 105-110/04 and 120 in the same basin.

The agreement with Essar is subject to approval by the relevant Vietnamese authorities.

Offshore Energy Today Staff, July 2, 2012