Essar Exploration & Production Limited, a subsidiary of Essar Energy plc, will sell a 50% stake in Vietnam’s offshore gas exploration block 114 to ENI International BV.

The reduction in Essar Energy’s stake in block 114 is in line with the company’s strategy for its exploration and production business, which is to introduce strategic partners to manage risk and to focus on developing its core assets.

Essar Energy acquired 100% 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.

Source - Business Line

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