EnQuest PLC (“EnQuest” or “the Group”) is pleased to announce that it has signed a Sale and Purchase Agreement to acquire Harbour Energy’s business in Vietnam, which includes the 53.125% equity interest in the Chim Sáo and Dua production fields. This transaction aligns with the Group’s strategic aim to grow its international operating footprint by investing in fast-payback assets, with low capex and reduced carbon intensity.
The transaction has an effective date of 1 January 2024 and is scheduled to complete during the second quarter of 2025. The headline value of the transaction is $84 million and, net of interim period cash flows, the consideration to be paid by EnQuest on completion is expected to equal c. $35 million. This fully staffed new country entry expands the Group’s South East Asian footprint beyond Malaysia, where EnQuest recently celebrated ten years of successful operations and was named Operator Of The Year by Petronas in 2024.
EnQuest will operate the Chim Sáo and Dua fields (‘Block 12W’) from completion, deploying its proven late life and FPSO asset management expertise to maximise value and progress discovered resources into reserves. As at 1 January 2025, net 2P reserves and 2C resources across the fields total 7.5 million boe and 4.9 million boe, respectively. Block 12W production has responded positively to the drilling of three infill wells during 2023 and a series of well interventions undertaken in 2023-2024, with the combined impact of these scopes contributing c. 3.0 MMboe to 2P reserves at 1 January 2025.
Net production in 2025 is forecast to average c. 5.3 kboepd, with further significant upside potential relating to well intervention performance. Oil (c. 73% of output) is high quality and has historically realised a c. 10% premium to Brent. Gas is commercialised via an Associated Gas Gathering Agreement. Field volumes are produced at a life of field asset breakeven of c. $40 per boe, with minimal capital requirements and a decommissioning liability that is covered via a PSC fund. The resulting free cash flow underpins Chim Sáo and Dua’s value, making them strong anchor assets for EnQuest’s entry into Vietnam.
The Block 12W Production Sharing Contract runs to November 2030, with an opportunity to extend the contract. Additional Block 12W prospectivity is spread across three gas discoveries and several additional targets; potential upside that EnQuest intends to investigate.
Commenting on the acquisition, EnQuest Chief Executive Officer, Amjad Bseisu said:
“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 South East Asia. The region is key to EnQuest’s growth and diversification strategy and we are excited by the potential to deploy our proven expertise and operating capability to optimise and enhance the Block 12W assets. We look forward to welcoming our new employees from the existing Harbour Energy team to the Group and are committed to working with our partners, Bitexco and PetroVietnam Exploration Production Corporation Ltd, to explore future opportunities in the assets. As EnQuest continues to work towards a transformational transaction in the UK North Sea, this agreement underlines our commitment to growth, a disciplined approach to M&A, and deploying capital where we see the most favourable returns.”
