Essar Energy Disposes of Half of Vietnam Block To ENI International
07/02/2012| 02:26am US/Eastern
LONDON--Essar Energy PLC (>> Essar Energy PLC), the India-focused integrated energy company, said Monday that its subsidiary Essar Exploration & Production Ltd is to sell a 50% stake in Vietnam's offshore gas exploration block 114 to ENI International B.V as it seeks to introduce partners to projects to manage risk.
-Essar Energy's stake in block 114 was previously 100%.
-Essar Energy 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 transaction is subject to agreement from the Vietnam Government.
-Essar shares closed Friday at 122 pence valuing the company at GBP1.59 billion.
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