EnQuest Expands Presence in Southeast Asia with Acquisition of Harbour Energy’s Business in Vietnam

London Stock Exchange-listed energy player EnQuest is making significant strides in expanding its presence in Southeast Asia with the recent acquisition of Harbour Energy’s business in Vietnam. This strategic move includes obtaining a 53.125% equity interest in the Chim Sáo and Dua production fields, aligning with EnQuest’s goal of investing in fast-payback assets with low capex and reduced carbon intensity.

The acquisition, with an estimated value of $84 million, will see EnQuest operating the Chim Sáo and Dua fields in Block 12W, leveraging its expertise to maximize value and advance discovered resources into reserves. The transaction is expected to be completed in the second quarter of 2025, further solidifying EnQuest’s presence in Southeast Asia beyond Malaysia.

Strategic Expansion and Growth

Amjad Bseisu, EnQuest’s Chief Executive Officer, expressed enthusiasm about the company’s entry into Vietnam, emphasizing the complementary nature of the acquisition to EnQuest’s existing Malaysia business. Bseisu highlighted the potential for growth and diversification in Southeast Asia, underscoring EnQuest’s commitment to deploying capital where it can achieve the most favorable returns.

With the Block 12W production sharing contract extending to November 2030 and additional prospectivity in the block, EnQuest is poised to explore further opportunities and maximize the value of its new assets in Vietnam. The company’s focus on operational efficiency and asset management bodes well for the future development of the Chim Sáo and Dua fields.

Optimizing Production and Value

EnQuest’s projections indicate an average net production of approximately 5.3 kboepd in 2025, with significant upside potential related to well intervention performance. The high-quality oil produced from the fields commands a premium to Brent, while gas is commercialized through an associated gas gathering agreement.

With a life of field asset breakeven of around $40 per boe and minimal capital requirements, EnQuest anticipates strong free cash flow from the Chim Sáo and Dua fields. These assets are positioned to serve as anchor assets for the company’s expansion into Vietnam and contribute to its overall growth strategy in the region.

Continued Portfolio Development

EnQuest’s acquisition in Vietnam comes on the heels of other significant milestones, including the production of 70 million barrels of oil from its Northern North Sea field and assuming decommissioning management responsibilities from Shell in the UK North Sea. These developments underscore EnQuest’s commitment to operational excellence and strategic portfolio management.