Eni Bolsters Vietnam Presence

Eni S.p.A. (NYSE: E) revealed Monday that, through its affiliate Eni Vietnam, the company has completed the acquisition of a 100 percent participating interest in, and the operatorship of, Block 115/09 offshore Vietnam from Krisenergy (Vietnam 115) Ltd.

Block 115/09 covers an area of 2,850 square miles, which has a water depth ranging from 295 feet to 3,280 feet. The area is adjacent to Block 114 where Eni Vietnam and its partner Essar Exploration and Production Limited recently announced the Ken Bau gas and condensates discovery, which is currently under appraisal. The new acreage also borders with Block 116, which is operated by Eni Vietnam with a 100 percent participating interest.

“Eni’s presence in the Country is further strengthened with this acquisition, consolidating its position in the recently discovered Ken Bau like play, in line with its strategy of expanding of its gas portfolio in the Asian Far East,” Eni said in a company statement posted on the group’s website on Monday.

“Eni has been present in Vietnam since 2013, and currently operates five blocks all located in the underexplored Song Hong and Phu Khanh basins, offshore central Vietnam,” the company added in the statement.

In July 2019, Eni announced that its exploration well in block 114 offshore Vietnam had proven the presence of gas and condensate in the Ken Bau prospect. In July last year, Eni announced that its Ken Bau-2X exploration well, which was also located in Block 114 offshore Vietnam, had confirmed a “significant” hydrocarbon accumulation on the Ken Bau discovery.

Preliminary estimates of Ken Bau accumulation provide a range between seven and nine trillion cubic feet of raw gas in place with 400 million to 500 million barrels of associated condensates, Eni said in a company statement back in July 2020.

To contact the author, email andreas.exarheas@rigzone.com