Australia's Neon Energy and Singapore's KrisEnergy said Monday that they have sold a portion of their stakes in exploration blocks offshore Vietnam to Italy's Eni.
Neon and KrisEnergy have each sold 25-percent stakes on both Block 120 and Block 105-110/04 to Eni Vietnam, a wholly owned subsidiary of Eni, giving Eni a 50 percent interest on the blocks. Both companies have retained a 25-percent interest on each block.
The sale of the stakes in the blocks is subjected to approval from Vietnamese regulators, said KrisEnergy and Eni.
Eni, as operator of the new joint ventures, will conduct seismic tests on 309 square miles (800 square kilometers) and drill an exploration well on Block 105. The company will also conduct seismic tests on 97 square miles (250 square kilometers) and drill an exploration well on Block 120.
Block 105 covers 2,777 square miles (7,192 square kilometers) in water depths of 66 feet to 262 feet (20 meters to 80 meters) over the Song Hong Basin offshore north central Vietnam. Oil and gas consultancy Netherland Sewell & Associates estimates that the block could contain around 461 million barrels to 1,724 million barrels of proven oil reserves.
Block 120 covers 3,270 square miles (8,469 square kilometers) in the northern Phu Khanh Basin, offshore central Vietnam, where water depths range from 164 feet to 3,609 feet (50 meters to 1,100 meters). Netherland Sewell & Associates projects that the block could house 4 trillion cubic feet (Tcf) to 14 Tcf of proven gas reserves.
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