Eni Buys Stake in Vietnam Gas Block from Essar

Eni has signed an agreement with Essar Energy for the acquisition of 50% and the operatorship of exploration block 114, located offshore in Vietnam's Song Hong Basin.

The exploration activities in the newly acquired block include the acquisition of a 3D seismic survey and the drilling of two wells. The block, which is approximately 5,900 square kilometers, has great potential and is located in an area where there have recently been significant exploration successes in nearby blocks.

Essar Energy had acquired the 100% stake in block 114 in 2007 and a production sharing contract with the Vietnam government became effective in 2010.  It said further investment was required to establish gas reserves in the block.

Last month, Eni signed two acquisition agreements on for blocks 105-110/04 and 120 in the same basin.

The agreement with Essar is subject to approval by the relevant Vietnamese authorities.