EnQuest plc has expanded its southeast Asia business into Vietnam by acquiring a 53.125% equity interest in the Chim Sáo and Dua production fields from Harbour Energy plc.
BLOCK 12W
The agreement, with a headline purchase of $84 million, is in line with the company’s aim to grow its international operating footprint with “fast-payback assets, with low capex and reduced carbon intensity”.
The company will pay, net of interim cash flows, the equivalent of circa $35m for the acquisition.
Effective from 1 January 2024, the transaction is scheduled to complete during Q2 2025, adding to EnQuest’s 10-year Malaysia operations.
EnQuest will acquire the 28.125% equity share held by Premier Oil Vietnam Offshore BV and the 25% share held by Premier Oil Vietnam Ltd.
Block 12W comprises three producing oil and gas fields of Chim Sáo, Chim Sáo North West and Dua located in the Nam Con Son Basin, 400km southwest of Vung Tau.
EnQuest will operate the Chim Sáo oil and gas and Dua gas fields with net 2P reserves and 2C resources totalling 7.5m boe and 4.9m boe, respectively.
Three infill wells during 2023 and subsequent well interventions has resulted in around 3MMboe to 2P reserves at 1 January 2025, said the company.
Forecast average 2025 net production is 5.3 kboepd with “significant upside potential” from well intervention with “high quality” oil providing 73% of output.
The fields also have three gas discoveries and “several additional targets”.
Block 12W’s production sharing contract can be extended beyond its expiry date of November 2030.
EnQuest’s non-operating joint venture partners are Bitexco, with a working interest of 31.875%, and PetroVietnam Exploration Production Corporation Ltd holding a 15% working interest.
Chief executive Amjad Bseisu said that southeast Asia was key to EnQuest’s growth and diversification.
“We look forward to welcoming our new employees from the existing Harbour Energy team to the group and are committed to working with our partners, Bitexco and PetroVietnam Exploration Production Corporation Ltd, to explore future opportunities in the assets.”
EnQuest’s other interests are in the UK North Sea.