Mitra Energy to Acquire 30% Stake in Vietnam Blocks in 'Positive' Move

Mitra Energy will acquire a 30 percent working interest in blocks 05-1B and 05-1C offshore the socialist republic of Vietnam for a total cash consideration of $14.3 million.

Blocks 05-1b and 05-1c are located 217 miles offshore Vietnam in the Nam Con Son basin in water depths of around 400 feet. The Block 05-1 PSC holds two fully appraised gas and condensate discoveries, Dai Nguyet and Sao Vang, in close proximity to the Nam Con Son gas transportation pipeline and existing production facilities. These gas discoveries are strategically located to supply gas to operating power generating complexes in the industrial center of Southeast Vietnam.

Partners in the blocks are Idemitsu Oil and Gas Co. Ltd. and JX Nippon Oil & Gas Exploration Corporation, each of which hold a 35 percent working interest. 

“Block 05-1 holds significant appraised gas resource capable of being developed quickly and put onto production at high margins and with material value accretion within our portfolio,” said A. Paul Blakeley, executive chairman of Mitra.

“The acquisition plays to our deep knowledge of the Vietnam gas market and extensive experience of operating in this highly prolific hydrocarbon basin. We look forward to working with Idemitsu to share our experience and thereby providing greater certainty towards delivering optimal outcomes for the project for the benefit of all stakeholders, including the Government of Vietnam,” Blakeley added.

Market reaction to Mitra’s latest news was described as “positive” by oil and gas advisory firm FirstEnergy Capital.

“After the recent Stag oil field acquisition in Australia, new management again demonstrating their appetite for acquiring current or near term production assets is very encouraging,” said FirstEnergy in a brief research note sent to Rigzone.

A graduate in journalism from Cardiff University, Andreas has eight years of experience as a business journalist. Email Andreas at andreas.exarheas@rigzone.com

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