UK-based oil firm Harbour Energy said Thursday it would sell its business in Vietnam to Big Energy Joint Stock Company for a consideration of $84 million.
Harbour Energy's Vietnam business includes a 53.125 percent interest in the Chim Sao and Dua producing fields in Block 12W.
Harbour's 53.125 percent interest in Block 12W, is made up of a 28.125 percent operated interest held through Premier Oil Vietnam Offshore BV and a 25 percent interest held through Premier Oil (Vietnam) Ltd.
The Chim Sao and Dua oil fields are expected to produce c.4 kboepd net to Harbour's 53.125 per cent share during 2023.
The transaction, which is subject to government approvals, has an effective date of January 1, 2023. Completion is targeted by year-end 2023. The divestment results in a country exit from Vietnam for Harbour.
Non-core Asset
Linda Z Cook, Chief Executive Officer of Harbour Energy, said: "We are pleased to have reached agreement to sell our business in Vietnam to Big Energy - a growing, local oil and gas player - as we continue to actively manage our portfolio. While Vietnam does not form a core part of our growth strategy going forward, we are proud of the quality of the business we have built, both in terms of the organization and assets, since our country entry in 2004. I would like to thank our Vietnam colleagues for their hard work over the years and wish them all the best for the future."
The buyer, Big Energy, which is part of the Big Capital JSC group, is a newly established, dedicated oil and gas business in Vietnam and has been active as Bitexco Group in upstream activities offshore Vietnam for over ten years.
Chim Sáo & Dua
The Chim Sáo oil field was discovered in 2006 and first oil was achieved in October 2011. Oil production is exported via a floating production storage and offloading (FPSO) vessel, and gas is exported by pipeline to Vung Tau near Ho Chi Minh City.
The Dua oil and gas field was subsequently developed as a subsea tie-back to Chim Sáo with first production achieved in July 2014.