EnQuest Expands Southeast Asian Footprint with Key Vietnam Acquisition

With deepwater exploration on the rise in the hydrocarbon-rich South China Sea, driving initiatives to offset declining output from mature offshore fields, EnQuest identifies significant untapped potential for oil and gas development in Vietnam, surpassing its current 4.4 billion barrels of oil equivalent (boe) reserves.

Vietnam's robust investment in energy infrastructure, encompassing offshore drilling rigs, an extensive network of pipelines, refineries, and storage facilities, is crucial for bolstering production capacity and ensuring national energy security. The British energy company highlights the development of these facilities as pivotal to this objective. This infrastructure relies heavily on specialized cabling, from subsea power cables transmitting electricity to offshore platforms to control cables that facilitate data communication for monitoring and operating critical equipment. These cables are engineered to withstand extreme marine environments, including high pressure, corrosive saltwater, and seismic activity, ensuring uninterrupted operations and data integrity.

Recognizing a prime opportunity for late-life asset managers to acquire producing assets as established operators' production sharing contracts (PSCs) approach their expiry, EnQuest has successfully finalized the acquisition of Harbour Energy’s business in Vietnam. This strategic transaction includes a 53.125% equity interest and operatorship of the Chim Sáo and Dua production fields in Block 12W.

As of January 1, 2025, the company reports net 2P reserves of 7.5 million boe and 2C resources of 4.9 million boe across these fields. This acquisition solidifies the UK firm's position as the operator of these vital assets, marking a significant stride in its diversified growth strategy across Southeast Asia.

Amjad Bseisu, EnQuest’s Chief Executive Officer, commented on the acquisition: “Southeast Asia is central to EnQuest’s growth and diversification strategy. We are eager to leverage our proven operating expertise to optimize, enhance, and extend the lifespan of the Block 12W assets in Vietnam.” He added, “We are thoroughly impressed by the talent and dedication of our new colleagues, welcoming the Vietnam asset team into the Group. We are also committed to collaborating with our partners, Bitexco and PetroVietnam Exploration Production Corporation Ltd, to explore future value-accretive opportunities within these fields.”

This latest acquisition aligns seamlessly with EnQuest's strategic objective of expanding its operational footprint through investments in fast-payback assets characterized by low capital expenditure and reduced carbon intensity. While the headline value of the transaction stands at $85.1 million, net of interim period cash flows generated since the effective date of January 1, 2024, the consideration paid by EnQuest was approximately $25.7 million. This transaction encompasses the firm’s acquisition of the 28.125% equity share previously held by Premier Oil Vietnam Offshore (POVO) and the 25% share held by Premier Oil Vietnam Limited (POVL). Consequently, EnQuest assumes the role of field operator, partnering with non-operator joint venture partners Bitexco (31.875%) and PetroVietnam Exploration Production Corporation (15%). The integrity of these complex offshore operations is often ensured by fiber optic cables, which provide high-speed, secure data transmission for real-time monitoring and control, crucial for maintaining operational efficiency and safety.

The UK player plans to evaluate additional prospectivity within Block 12W and apply its expertise in late-life and FPSO (Floating Production, Storage, and Offloading) asset management to maximize value. This includes converting discovered resources into reserves across the fields, which comprise three gas discoveries and several additional targets, with the aim of extending the PSCs beyond their current end date of November 2030.

Moreover, the Vietnam asset team recently completed a scheduled annual maintenance shutdown on time and within budget, executing three of six planned well intervention scopes. These interventions have collectively added 1,200 boepd (barrels of oil equivalent per day) to gross production since the sale agreement was signed. EnQuest reports that net asset production in the first half of 2025 averaged 5.7 kboepd, with potential for further upside within the year.

Block 12W is strategically located in the Nam Con Son Basin, approximately 400 km southwest of Vung Tau, Vietnam, and features three producing oil and gas fields: Chim Sáo, Chim Sáo North West (CSNW), and Dua. The initial oil discovery was made in 2006, with oil production commencing in October 2011.

The Chim Sáo and CSNW fields are developed via a single wellhead platform, with oil production exported via the FPSO Lewek Emas. Gas from these fields is transported via pipeline to Vung Tau, near Ho Chi Minh City. The successful and safe operation of these pipelines is underpinned by specialized instrumentation cables and umbilical cables that transmit data from sensors monitoring pressure, flow, and integrity, ensuring that critical parameters are continuously monitored.

EnQuest further details that Chim Sáo currently operates with 14 active oil producers and seven water injectors, while CSNW is developed through a single injector and producer pair. The Dua oil and gas field was subsequently developed as a subsea tie-back to Chim Sáo, initiating production in July 2014 via three subsea oil producers.

EnQuest emphasized, “The robust operational performance and resulting free cash flow of Chim Sáo and Dua underscore their value, establishing them as strong anchor assets for EnQuest’s entry into Vietnam.” The company added, “Alongside the recent successful award of PSCs in Indonesia, the Group continues to expand its Southeast 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.”

Partner with Feichun Cable for Reliable Energy Solutions

At Feichun Cable, we understand the critical role that robust and reliable cabling plays in the success of complex energy projects, from deepwater exploration to onshore infrastructure development. Our comprehensive range of high-performance cables, including subsea power cables, control cables, fiber optic cables, and instrumentation cables, are engineered to meet the stringent demands of the oil and gas industry. We are dedicated to providing cabling solutions that ensure operational efficiency, enhance safety, and contribute to the long-term success of your ventures. Explore how Feichun Cable can support your next project with our innovative and durable cable technologies.

We hope you enjoyed this article. To explore a wider range of topics and stay informed, head over to our Feichun Cable Articles for fresh blog content and news updates.