London-based EnQuest PLC is buying Harbour Power’s enterprise in Vietnam, which features a 53.125 % fairness curiosity within the Chim Sáo and Dua manufacturing fields.
The transaction has an efficient date of January 1, 2024, and is anticipated to shut within the second quarter of 2025, EnQuest stated in a information launch. The headline worth of the transaction is $84 million and the corporate expects to pay consideration of roughly $35 million upon completion, internet of interim interval money flows.
Upon closing of the acquisition, EnQuest will function the Chim Sáo and Dua fields (Block 12W), “deploying its confirmed late life and FPSO asset administration experience to maximise worth and progress found sources into reserves,” in keeping with the discharge.
- Advertisement -
Block 12W is made up of three producing oil and fuel fields: Chim Sáo, Chim Sáo North West (CSNW) and Dua, positioned within the Nam Con Son Basin, roughly 248.5 miles (400 kilometers) south west of Vung Tau, Vietnam.
As of 1 January, internet 2P reserves and 2C sources throughout the fields totaled 7.5 million barrels of oil equal (boe) and 4.9 million boe, respectively. Block 12W manufacturing has responded positively to the drilling of three infill wells throughout 2023 and a sequence of effectively interventions undertaken in 2023-2024, in keeping with the discharge. The mixed influence of those actions contributed round 3.0 million boe to 2P reserves. Web manufacturing in 2025 is projected to common round 5,300 boe per day, “with additional vital upside potential referring to effectively intervention efficiency”.
EnQuest stated the acquisition aligns with its “strategic purpose to develop its worldwide working footprint by investing in fast-payback property, with low capex and lowered carbon depth”.
The Block 12W Manufacturing Sharing Contract (PSC) runs till November 2030, with a chance to increase the contract. Further Block 12W prospectivity is unfold throughout three fuel discoveries and several other further targets, EnQuest famous, including that it plans to discover the potential upside of the property.
The transaction entails EnQuest’s acquisition of the 28.125 % fairness share held by Premier Oil Vietnam Offshore BV (POVO) and the 25 % share held by Premier Oil Vietnam Restricted (POVL). EnQuest would be the area operator, with non-operator three way partnership companions Bitexco, with a working curiosity of 31.875 %, and PetroVietnam Exploration Manufacturing Company Ltd, with 15 %.
EnQuest CEO Amjad Bseisu stated, “Our entry into Vietnam is extremely complementary to EnQuest’s well-established and high-performing Malaysia enterprise and considerably enhances the dimensions of our operations and alternative in South East Asia. The area is vital to EnQuest’s progress and diversification technique and we’re excited by the potential to deploy our confirmed experience and working functionality to optimise and improve the Block 12W property”.
“We stay up for welcoming our new staff from the prevailing Harbour Power crew to the Group and are dedicated to working with our companions, Bitexco and PetroVietnam Exploration Manufacturing Company Ltd, to discover future alternatives within the property. As EnQuest continues to work in direction of a transformational transaction within the UK North Sea, this settlement underlines our dedication to progress, a disciplined method to M&A, and deploying capital the place we see essentially the most favorable returns,” he added.
In keeping with the discharge, the Chim Sáo oil area was found in 2006 and first oil was achieved in October 2011. Having been developed by way of a single wellhead platform, Chim Sáo and CSNW oil manufacturing is exported by means of the Lewek Emas floating manufacturing storage and offloading (FPSO) vessel, and fuel is exported by pipeline to Vung Tau close to Ho Chi Minh Metropolis. Chim Sáo presently has 14 lively oil producers and 7 water injectors.
The Dua oil and fuel area was subsequently developed as a subsea tie-back to Chim Sáo, with first manufacturing achieved in July 2014, by means of three subsea oil producers.
To contact the writer, e-mail rocky.teodoro@rigzone.com
Generated by readers, the feedback included herein don’t mirror the views and opinions of Rigzone. All feedback are topic to editorial evaluation. Off-topic, inappropriate or insulting feedback might be eliminated.
