A new transaction between Enquest PLC (AIM:ENQ) and Harbour Energy PLC (LSE:HBR), two of London’s largest independent oil and gas firms, will see the former acquire a portfolio of assets in Vietnam.
EnQuest is acquiring all of Harbour's Vietnam business including a 53.125% interest in the Chim Sáo and Dua production fields.
Worth $84 million, the transaction is expected to close in the second quarter of 2025, with an effective date of 1 January – after adjustments for interim cash flows, EnQuest expects to pay around $35 million of cash at completion.
For EnQuest the deal expands its footprints in Asia, adding to its assets in Malaysia, and it intends to enhance the Vietnam assets by managing the fields ‘late-life’ and its floating production storage and offloading (FPSO) operations.
Production from the fields in 2025 is forecasted to average 5,300 barrels of oil equivalent per day (boepd) – about 73% of which is deemed to be high-quality oil, pricing at a 10% premium to Brent.
At the start of 2025, net reserves and resources stood at an estimated at 7.5 million barrels of oil equivalent (boe) and 4.9 million boe, respectively.
"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,” EnQuest chief executive Amjad Bseisu said.
“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.”
He added: “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."