British energy group EnQuest is to acquire Harbour Energy's business in Vietnam, it said on Wednesday, as the North Sea-focused company moves to expand further outside its home market in response to higher UK taxes.
The deal is valued at $84 million including debt, and EnQuest said it expects to pay a net $35 million on completion.
It will acquire just over a 53% equity interest in the Chim Sao and Dua production fields, with the transaction due to complete in the second quarter of this year.
North Sea producers have said a UK windfall tax on the industry introduced following the spike in energy prices in 2022 could deter investment in the aging oil and gas basin.
Some companies have sold assets, while others have merged operations and sought to diversify to other regions.
Last year EnQuest CEO Amjad Bseisu said the company was looking at opportunities in Southeast Asia, where he said "the return on capital investment is compelling". The group already has operations in Malaysia.
In Britain, he said he was disappointed with the ongoing application of the windfall tax, "despite operating in an environment where no windfall conditions exist".
"This agreement underlines our commitment to growth, a disciplined approach to M&A, and deploying capital where we see the most favourable returns," Bseisu added in a statement.
(Reuters - Reporting by Arunima Kumar in Bengaluru; Editing by Savio D'Souza, Varun H K and Jan Harvey)