Eni Reports Gas Find Off Vietnam

Italian major Eni hailed a gas and condensate discovery on July 24 in the frontier Song Hong basin off the coast of Vietnam.

The Ken Bau IX exploration well was drilled at the Ken Bau prospect within block 114, in waters 95 metres deep, Eni said. It reached a depth of 3,606 metres, encountering several intervals of gas and condensate sandstone interbedded with Miocene age shale. The estimated net reservoir thickness exceeded 100 metres.

The result indicates “a significant potential of the hydrocarbon accumulation,” Eni said. However, the well was plugged and abandoned ahead of schedule, owing to “technical issues”. The borehole was originally designed to target deeper levels that could contain “significant additional resources.”

Eni will embark on another drilling campaign early next year to evaluate the discovery’s upside fully.

“Ken Bau 1X results represent a significant breakthrough for evaluating the exploration potential in the Song Hong basin,” the company said.

Eni, which has been working in Vietnam since 2013, has a 50% stake in block 114 with Indian partner Essar holding the remaining interest. The company, which has been working in Vietnam since 2013, also controls 100% of the neighbouring block 116, as well as two other contract areas in the country's offshore zone. All of this acreage lies in the under-explored Song Hong and Phu Khanh basins.