London-listed Essar Energy plc today said it has sold 50 per cent stake in a gas exploration block off Vietnam to Italian energy firm ENI for an undisclosed amount.
The company said its subsidiary Essar Exploration & Production Ltd “has agreed to sell a 50 per cent stake in Vietnam’s offshore gas exploration block 114 to ENI International BV”.
Essar Energy had acquired the 100 per cent stake in block 114 in 2007 and a production sharing contract with the Vietnam Government became effective in 2010.
“Further investment is required to establish gas reserves in the block and no gas is being produced at present. Under the terms of the transaction,ENI is also assuming operator status for the block,” the company said in a statement.
The transaction is subject to agreement from the Vietnam Government.
“The reduction in Essar Energy’s stake in block 114 is in line with the strategy for its exploration and production business of introducing strategic partners to help manage risk and of focusing on the development of its core assets,” the statement added.