EnQuest expands South East Asian presence with $84m Vietnam deal

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EnQuest PLC has taken a strategic step to expand its operations in South East Asia by acquiring ‘s Vietnam business. The $84 million acquisition includes a 53.125% equity interest in the and Dua production fields, located in Block 12W of the Nam Con Son Basin. This transaction reflects EnQuest’s ongoing strategy to invest in low-carbon, high-return assets, bolstering its international portfolio and strengthening its foothold in the energy-rich region of Vietnam.

With an effective transaction date of 1 January 2024, the deal is expected to be finalised by the second quarter of 2025. After adjustments for interim period cash flows, EnQuest anticipates paying approximately $35 million upon completion.

What Does the Acquisition Mean for EnQuest’s Growth in Vietnam?

This acquisition marks EnQuest’s entry into Vietnam and extends its presence in South East Asia, where it has already established a strong operational track record in Malaysia. The company, which recently celebrated ten years of successful operations in Malaysia and was named Operator of the Year by Petronas in 2024, views Vietnam as a natural progression for its expansion strategy.

The Chim Sáo and Dua fields offer EnQuest access to high-quality oil assets with a low life-of-field breakeven cost of approximately $40 per barrel of oil equivalent (boe). The fields require minimal capital investment while generating strong free cash flow, positioning them as pivotal anchor assets in EnQuest’s South East Asian portfolio.

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Why Are the Chim Sáo and Dua Fields Valuable?

The Chim Sáo oil field, discovered in 2006, began production in October 2011. Developed with a single wellhead platform, it currently has 14 active oil producers and seven water injectors, producing oil exported via the Lewek Emas floating production storage and offloading (FPSO) vessel. Chim Sáo North West (CSNW), part of the same block, features a producer-injector pair for optimal production efficiency.

The Dua field, which began production in 2014, operates as a subsea tie-back to Chim Sáo with three active oil producers. Together, these fields contribute significantly to Block 12W’s estimated 7.5 million boe in proven (2P) reserves and an additional 4.9 million boe in contingent (2C) resources.

Recent drilling and well interventions in 2023 and 2024 added approximately 3 million boe to 2P reserves, showcasing the fields’ potential for further optimisation under EnQuest’s management. Production from Block 12W is forecast to average 5.3 thousand barrels of oil equivalent per day (kboepd) in 2025, with oil accounting for 73% of the output. Historically, the high-quality crude from these fields has realised a 10% premium over Brent prices, highlighting its competitive market advantage.

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How Does This Deal Align with EnQuest’s Strategic Vision?

EnQuest aims to leverage its expertise in late-life asset management and FPSO operations to maximise value from the Chim Sáo and Dua fields. The company’s strategic approach focuses on developing assets with low capital expenditure, fast payback periods, and reduced carbon intensity.

Commenting on the acquisition, EnQuest Chief Executive Officer stated that the company is committed to enhancing the scale of its operations in South East Asia. “Our entry into Vietnam complements our high-performing Malaysian business and underlines our disciplined approach to mergers and acquisitions. We are excited to bring our expertise to Block 12W and look forward to working closely with our partners to explore the asset’s full potential,” Bseisu said.

What Opportunities Does Vietnam’s Energy Sector Offer?

Vietnam’s energy sector is ripe with potential, boasting estimated reserves of 4.4 billion boe and increasing exploration activity in the hydrocarbon-rich South China Sea. The country has been investing heavily in infrastructure, including offshore drilling rigs, pipelines, and refineries, to bolster production capacity and energy security.

The Chim Sáo and Dua fields provide EnQuest with a platform to tap into Vietnam’s evolving oil and gas landscape. The Block 12W Production Sharing Contract (PSC) runs until November 2030, with the possibility of extensions. Additional exploration opportunities in Block 12W include three gas discoveries and several unexploited targets, offering significant upside potential.

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Moreover, Vietnam’s refining capacity continues to grow, supported by facilities like the Dung Quat and Nghi Son refineries, which aim to process domestically produced crude and reduce reliance on imports. This infrastructure development further solidifies Vietnam’s position as a regional energy hub.

What Does This Mean for EnQuest’s Future?

EnQuest’s acquisition of the Chim Sáo and Dua fields aligns with its broader strategy to transition responsibly while maintaining a focus on operational excellence. By expanding its portfolio in South East Asia, the company is diversifying its revenue streams and enhancing its position in markets with significant growth potential.

This move also complements EnQuest’s ongoing efforts to secure transformative transactions in the UK , demonstrating its commitment to disciplined capital deployment and sustainable growth.


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