EnQuest’s $85 mln Vietnam oil field deal set to boost local service contractors

Enquest’s blockbuster acquisition of a major stake in Vietnam’s major oil fields is expected to open up opportunities for local service contractors.

EnQuest PLC, a London-listed energy company, has completed the acquisition of Harbour Energy’s business in Vietnam, which holds a 53.125% equity interest in the Chim Sao and Dua oil fields.

The deal, first announced in January, also transfers operatorship of the fields to EnQuest, the UK firm said in a July 10 statement.

EnQuest paid $85.1 million for the stake, making it the largest M&A transaction in Vietnam in the first seven months of 2025 outside the real estate sector, according to Grant Thornton Vietnam.

Following the transaction, EnQuest becomes the largest shareholder in the project, alongside Vietnamese partners Bitexco Group, with 31.875%, and state-owned PetroVietnam Exploration Production Corp. (PVEP), with 15%.

The Chim Sao and Dua fields are located in Block 12W of the Nam Con Son basin, off the southern coast of Vung Tau. It provides a commercial edge: its light, sweet crude is typically sold at a premium to benchmark Brent, offering higher margins for the operator.

Market implications

The deal comes as Vietnam’s M&A activity slows, underscoring both the portfolio reshuffling of global energy companies and potential spillover effects for the country’s oilfield services sector, particularly PetroVietnam Technical Services Corp. (PTSC, HNX: PVS).

Unlike companies chasing new reserves, EnQuest specializes in managing late-life oil fields and operating floating production, storage, and offloading (FPSO) vessels more efficiently. The strategy aligns with Vietnam’s energy landscape, where many of its key oil fields have passed their peak output and are in decline.

EnQuest’s expansion into Vietnam also reflects a broader shift among North Sea producers, many of which have sought overseas opportunities after the UK government imposed a windfall tax on oil and gas profits following the 2022 energy price surge.

The operatorship shift from Harbour Energy to EnQuest is expected to directly impact PTSC, whose subsidiary currently provides operations and maintenance (O&M) services for the Chim Sao FPSO. The contract has been a stable revenue stream for PTSC, which received a performance award from Harbour Energy in 2023.

PTSC’s established technical know-how and track record could give it an edge in negotiating contract renewals and potential service expansions with the new operator.

In addition, if EnQuest ramps up its CapEx for drilling and exploration over the longer term, this could create opportunities for other local contractors, including PV Drilling (HoSE: PVD).