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Highlights
- Strategic Acquisition: EnQuest has signed a Sale and Purchase Agreement to acquire Harbour Energy's 53.125% stake in the Chim Sáo and Dua production fields in Vietnam, expanding its footprint in South East Asia.
- Transaction Details: The headline transaction value is $84 million, with an expected net payment of approximately $35 million upon completion in Q2 2025.
- Operational Expertise: EnQuest plans to operate the fields from completion, leveraging its expertise in late-life and FPSO asset management.
- Reserves and Production Forecast: As of January 2025, the fields have 7.5 million boe in 2P reserves and 4.9 million boe in 2C resources, with an average 2025 net production forecast of 5.3 kboepd.
EnQuest PLC (LSE:ENQ) is pleased to announce that it has entered into a Sale and Purchase Agreement to acquire Harbour Energy’s business in Vietnam. The acquisition includes a 53.125% equity interest in the Chim Sáo and Dua production fields, located in Block 12W. This strategic acquisition aligns with EnQuest’s goal to expand its international footprint by acquiring fast-payback assets that offer low capital expenditure and reduced carbon intensity.
Transaction Details
The transaction has an effective date of January 1, 2024, and is expected to complete in the second quarter of 2025. The headline value of the transaction is $84 million. However, after accounting for interim period cash flows, the total consideration EnQuest is expected to pay at completion will be approximately $35 million.
This acquisition marks EnQuest's entry into Vietnam, further expanding its presence in South East Asia beyond its successful ten-year operation in Malaysia. The company’s success in Malaysia was recently recognized when it was named Operator of the Year by Petronas in 2024.
Operational Strategy and Reserves
EnQuest will assume operations of the Chim Sáo and Dua fields upon completion. The company plans to deploy its expertise in late-life asset management and Floating Production Storage and Offloading (FPSO) systems to maximize field value and convert discovered resources into reserves. As of January 2025, the fields boast a total of 7.5 million barrels of oil equivalent (boe) in 2P reserves and 4.9 million boe in 2C resources.
The field’s production has been positively impacted by the drilling of three infill wells and a series of well interventions in 2023-2024, contributing approximately 3.0 million boe to the 2P reserves. The forecast net production for 2025 is expected to average around 5.3 kboepd, with significant upside potential from well interventions.
Financial and Commercial Aspects
The oil produced from the Chim Sáo and Dua fields constitutes about 73% of output and has historically realized a 10% premium to Brent prices. Gas is commercialized through an Associated Gas Gathering Agreement. The life of field asset breakeven is approximately $40 per boe, with minimal capital requirements and a decommissioning liability covered through a Petroleum Sharing Contract (PSC) fund.
