Essar Energy sells stake in Vietnam gas block to ENI

MUMBAI: Essar Energy plc, the India-focused integrated energy company, today announced that its subsidiary Essar Exploration & Production Limited has agreed to sell a 50 per cent stake in Vietnam's offshore gas exploration block 114 to ENI International BV

The reduction in Essar Energy's stake in block 114, which was previously 100 per cent, is in line with the strategy for its exploration and production business of introducing strategic partners to help manage risk and of focusing on the development of its core assets.

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.