Repsol Revs up Interest in Vietnam Field
Tuesday 18 April 2017
Spanish energy company Repsol has agreed to boost its ownership of the under-development Ca Rong Do oil and gas field off south-east Vietnam by acquiring a joint venture partner's interest.
The seller is Australian independent Pan Pacific Petroleum, which holds a 5% interest in Block 07/03 in the Nam Con Son basin.
Upon completion of the US$5 million purchase, Repsol's interest will be a 60% operating stake with Pearl Energy (Mubadala Petroleum) on 25% and PetroVietnam Exploration and Production (15%).
Block 07/03 contains the Ca Rong Do oil and gas field, which is under development at an estimated capital cost of US$1.1 billion, and is closing in on a final investment decision.
Pan Pacific said that following the sale it will have no debts and assets of about US$20 million (unaudited), about twice the market capitalisation of the company.
The Australian added the sale gives it the "freedom to deploy its capital in a range of affordable investment opportunities rather than committing to and being reliant on a single investment that is significantly larger than existing funding capabilities”.
Completion of the deal is subject to shareholder approval.