REG - EnQuest PLC - Completion of Vietnam acquisition

EnquestAnnouncement

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RNS Number : 4238Q  EnQuest PLC  10 July 2025

 

 

EnQuest PLC, 10 July 2025

 

Acquisition of Harbour Energy's Vietnam Business

 

 

EnQuest PLC ("EnQuest" or "the Group") is pleased to announce that it has
completed the acquisition of Harbour Energy's business in Vietnam, which holds
a 53.125% equity interest in (and operatorship of) the Chim Sáo and Dua
production fields ('Block 12W'). Completion confirms EnQuest as operator and
represents another key step in delivering the Group's diversified growth
across South East Asia and aligns with its strategic aim to expand its
operating footprint by investing in fast-payback assets, with low capex and
reduced carbon intensity.

The headline value of the transaction is $85.1 million and, net of interim
period cash flows (generated since the effective date of 1 January 2024), the
consideration paid by EnQuest was circa $25.7 million.

As at 1 January 2025, net 2P reserves and 2C resources across the fields
totalled 7.5 million boe and 4.9 million boe, respectively. EnQuest intends to
assess additional Block 12W prospectivity and deploy its proven late-life and
FPSO asset management expertise to maximise value and translate discovered
resources into reserves at the fields (which are spread across three gas
discoveries and several additional targets), with a view to extending the
Production Sharing Contract beyond its current end date of November 2030.

Since signing the transaction, the Vietnam asset team has successfully
completed a planned annual maintenance shutdown (on time and within budget)
and executed three of six scheduled well intervention scopes, which have added
c.1,200 boepd of gross production. Net asset production in the first half of
2025 averaged 5.7 kboepd, with the potential for further in-year upside
relating to well intervention activity and performance and the positive impact
of a production-enhancing chemical soaking process undertaken during the
shutdown.

Robust operational performance and the resulting free cash flow underpin Chim
Sáo and Dua's value, making them strong anchor assets for EnQuest's entry
into Vietnam. Alongside the recent successful award of PSCs in Indonesia, the
Group continues to expand its South East Asian footprint beyond Malaysia,
where EnQuest recently celebrated ten years of successful operations and was
named Operator of the Year by Petronas for a second successive year.

Commenting on the acquisition, EnQuest Chief Executive Officer, Amjad Bseisu
said:

"South East Asia is key to EnQuest's growth and diversification strategy, and
we are excited by the opportunity to utilise our proven operating expertise to
optimise, enhance and extend the Block 12W assets in Vietnam. We are impressed
with the talent and attitude displayed by our new colleagues as we welcome the
Vietnam asset team into the Group, and we are committed to working with our
partners, Bitexco and PetroVietnam Exploration Production Corporation Ltd, to
explore future value-accretive opportunities within the fields."

 

Ends

 

 

For further information please contact:

 

 EnQuest PLC                                                      Tel: +44 (0)20 7925 4900
 Amjad Bseisu (Chief Executive Officer)
 Jonathan Copus (Chief Financial Officer)
 Craig Baxter (Head of Investor Relations and Corporate Affairs)

 Teneo                                                            Tel: +44 (0)20 7353 4200
 Martin Robinson
 Harry Cameron

 

 

 

NOTES TO EDITORS

 

 

BLOCK 12W BACKGROUND

 

Block 12W is made up of three producing oil and gas fields; Chim Sáo, Chim
Sáo North West (CSNW') and Dua, located in the Nam Con Son Basin,
approximately 400 km south west of Vung Tau, Vietnam.

The Chim Sáo oil field was discovered in 2006 and first oil was achieved in
October 2011. Having been developed via a single wellhead platform, Chim Sáo
and CSNW oil production is exported via  the Lewek Emas floating production
storage and offloading ('FPSO') vessel, and gas is exported by pipeline to
Vung Tau near Ho Chi Minh City. Chim Sáo currently has 14 active oil
producers and seven water injectors. CSNW is developed via a single injector
and producer pair.

The Dua oil and gas field was subsequently developed as a subsea tie-back to
Chim Sáo, with first production achieved in July 2014. Dua production is via
three subsea oil producers.

This transaction involves EnQuest's acquisition of the 28.125% equity share
held by Premier Oil Vietnam Offshore BV (POVO) and the 25% share held by
Premier Oil Vietnam Limited (POVL). EnQuest will be the field operator, with
non-operator joint venture partners Bitexco (working interest of 31.875%) and
PetroVietnam Exploration Production Corporation Ltd (working interest of 15%).

VIETNAM

 

Vietnam has significant potential for oil and gas development beyond its
established 4.4 billion boe reserves, with an increase in deepwater
exploration in the hydrocarbon-rich South China Sea driving projects which
seek to replace the production from mature offshore fields. In addition, there
is significant opportunity for late life asset managers, such as EnQuest, to
acquire producing assets as established operators have PSCs nearing their end
dates.

 

Vietnam is investing in infrastructure to support oil and gas production,
including offshore drilling rigs, pipelines, refineries, and storage
facilities. The development of these facilities is vital for enhancing
production capacity and ensuring the country's energy security.

 

Vietnam has also invested in expanding its refining capacity and petrochemical
industry. The Dung Quat Refinery and the Nghi Son Refinery are examples of
this effort to process domestically produced crude oil and to reduce reliance
on imports.

 

ENQUEST

 

EnQuest is providing creative solutions through the energy transition. As an
independent energy company with operations in the UK North Sea and South East
Asia, the Group's strategic vision is to be the partner of choice for the
responsible management of existing energy assets, applying its core
capabilities to create value through the transition.

EnQuest PLC trades on the London Stock Exchange.

Please visit our website www.enquest.com (http://www.enquest.com) for more
information on our global operations

 

Forward-looking statements: This announcement may contain certain
forward-looking statements with respect to EnQuest's expectations and plans,
strategy, management's objectives, future performance, production, reserves,
costs, revenues and other trend information. These statements and forecasts
involve risk and uncertainty because they relate to events and depend upon
circumstances that may occur in the future. There are a number of factors
which could cause actual results or developments to differ materially from
those expressed or implied by these forward-looking statements and forecasts.
The statements have been made with reference to forecast price changes,
economic conditions and the current regulatory environment. Nothing in this
announcement should be construed as a profit forecast. Past share performance
cannot be relied upon as a guide to future performance.

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