London-based EnQuest acquires fellow firm Harbour Energy’s Vietnam business

EnQuest, listed on the London Stock Exchange (LON) as ENQ, has acquired activities in Vietnam of fellow firm Harbour Energy (LON: HBR), the former said on Wednesday.

EnQuest said it has signed a sale and purchase agreement to acquire Harbour Energy’s business, including a 53.125% equity interest in the Chim Sao and Dua production fields, offshore southern Vietnam.

This transaction aligns with the firm’s strategic aim to grow its international operating footprint by investing in fast-payback assets, with low capex and reduced carbon intensity, EnQuest said.

The headline value of the transaction is $84 million and the net of interim period cash flows, the consideration to be paid by EnQuest on completion, is expected to equal $35 million.

This transaction involves EnQuest’s acquisition of the 28.125% equity share held by Premier Oil Vietnam Offshore BV (POVO) and the 25% share held by Premier Oil Vietnam Limited (POVL).

EnQuest will be the field operator, alongside non-operator joint venture partners Bitexco with a working interest of 31.875% and Petrovietnam Exploration Production Corporation (PVEP) with a working interest of 15%.

EnQuest will operate the Chim Sao and Dua fields of Block 12W from completion, deploying its asset management expertise to maximize value and progress discovered resources into reserves.

As of January 1, 2025, net 2P reserves and 2C resources across the fields total 7.5 million barrel of oil equivalent (boe) and 4.9 million boe, respectively. Block 12W production has responded positively to the drilling of three infill wells during 2023 and many well interventions in 2023-2024, contributing three million boe to 2P reserves on January 1, 2025.

The Block 12W production sharing contract runs to November 2030, with an opportunity to extend the contract. Additionally, Block 12W prospectivity is spread across three gas discoveries and several additional targets, providing potential upside for EnQuest.

“Our entry into Vietnam is highly complementary to EnQuest’s well-established and high-performing Malaysia business and significantly enhances the scale of our operations and opportunity in Southeast Asia. The region is key to EnQuest’s growth and diversification strategy,” said EnQuest CEO Amjad Bseisu.

Vietnam has significant potential for oil and gas development beyond its established 4.4 billion boe reserves, with an increase in deepwater exploration in the hydrocarbon-rich East Sea (internationally known as the South China Sea) driving projects which seek to replace the production from mature offshore fields, EnQuest highlighted.