January 22, 2025 [Storage Terminals Magazine]- EnQuest PLC has announced the signing of a sale and purchase agreement to acquire Harbour Energy’s business in Vietnam, including a 53.125 percent equity interest in the Chim Sáo and Dua production fields. This acquisition aligns with EnQuest’s strategy to expand its international footprint by investing in fast-payback assets with low capital requirements and reduced carbon intensity.
The transaction, effective from 1 January 2024, is expected to close in the second quarter of 2025. Valued at $84 million, the final consideration payable by EnQuest at completion is projected to be approximately $35 million, accounting for interim period cash flows. This acquisition marks EnQuest’s entry into Vietnam and strengthens its presence in Southeast Asia, complementing its successful operations in Malaysia, where the group was recognised as Operator of the Year by Petronas in 2024.
EnQuest will assume operatorship of the Chim Sáo and Dua fields (Block 12W) upon completion, leveraging its expertise in late-life and FPSO (Floating Production Storage and Offloading) asset management to optimise production and progress discovered resources into reserves. As of 1 January 2025, Block 12W contains 7.5 million barrels of oil equivalent in net 2P reserves and 4.9 million boe in 2C resources.
Production from the fields has responded positively to recent investments, including three infill wells drilled in 2023 and multiple well interventions during 2023–2024, which added approximately 3.0 MMboe to 2P reserves. In 2025, net production is forecast to average 5,300 barrels of oil equivalent per day (kboepd), with further potential upside from ongoing well interventions.
The Chim Sáo and Dua fields produce high-quality oil, approximately 73 percent of output, which commands a 10 percent premium to Brent. Gas is commercialised under an Associated Gas Gathering Agreement. The fields operate at a breakeven cost of around $40 per boe, with minimal capital expenditure requirements and a decommissioning liability covered by a PSC (Production Sharing Contract) fund. The resulting free cash flow underpins their value as strategic anchor assets for EnQuest’s entry into Vietnam.
The Block 12W Production Sharing Contract runs until November 2030, with an option for extension. Additional opportunities include three gas discoveries and several unexplored targets within the block, offering further growth potential that EnQuest intends to pursue.
Amjad Bseisu, CEO of EnQuest, commented on the acquisition:
“Our entry into Vietnam complements EnQuest’s well-established and high-performing Malaysia business, significantly enhancing our scale and opportunities in Southeast Asia. The region is central to EnQuest’s growth and diversification strategy, and we are excited to apply our expertise to optimise and enhance the Block 12W assets. We look forward to welcoming new employees from Harbour Energy and collaborating with our partners, Bitexco and PetroVietnam Exploration Production Corporation Ltd, to explore additional opportunities within the assets.
As EnQuest continues to progress a transformational transaction in the UK North Sea, this agreement reflects our disciplined approach to growth and commitment to deploying capital where it delivers the most favourable returns.”
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