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EnQuest has signed a sale and purchase agreement to acquire Harbour Energy's Vietnam business, marking an expansion of its operations in South East Asia.
The headline value of the transaction is $84m, with EnQuest expected to pay $35m upon completion after accounting for interim period cash flows.
The acquisition is in line with EnQuest's goal to grow its international footprint with assets that offer fast payback, low capital expenditure and reduced carbon intensity.
Set to be completed in Q2 2025, the deal includes a 53.125% equity interest in the Chim Sáo and Dua production fields, known as Block 12W.
Block 12W lies in the Nam Con Son Basin, 400km south-west of Vung Tau, offshore Vietnam.
Upon completion, EnQuest will operate the Chim Sáo and Dua fields, applying its expertise in managing late-life assets and floating production storage and offloading (FPSO) units to maximise the fields' value and convert discovered resources into reserves.
As of 1 January 2025, the net 2P reserves and 2C resources across the fields are estimated at 7.5 million barrels of oil equivalent (mboe) and 4.9mboe, respectively.
The fields have shown a positive response to three infill wells drilled in 2023 and a series of well interventions carried out between 2023 and 2024, which have collectively added 3mboe to the 2P reserves.
EnQuest chief executive officer Amjad Bseisu said: “Our entry into Vietnam is highly complementary to EnQuest’s well-established and high-performing Malaysia business and significantly enhances the scale of our operations and opportunity in South East Asia.
“The region is key to EnQuest’s growth and diversification strategy, and we are excited by the potential to deploy our proven expertise and operating capability to optimise and enhance the Block 12W assets.
“As EnQuest continues to work towards a transformational transaction in the UK North Sea, this agreement underlines our commitment to growth, a disciplined approach to M&A [mergers and acquisitions], and deploying capital where we see the most favourable returns.”
For 2025, the forecasted net production from Block 12W is approximately 5,300 barrels of oil equivalent per day, with the potential for significant increases due to well intervention performance.
The oil, constituting around 73% of the output, is of high quality and has historically commanded a premium of approximately 10% over Brent prices. The gas is sold through an associated gas gathering agreement.
EnQuest plans to explore additional prospects within Block 12W, which include three gas discoveries and several other targets, to unlock further value. The production sharing contract for Block 12W extends to November 2030.