Eni SPA has taken a farmouts from Neon Energy Ltd. and KrisEnergy Ltd. and will become operator of an exploration program on two blocks in the Song Hong and Phu Kanh basins offshore Vietnam, subject to government approvals.
The Song Hong basin is estimated to contain 10% of Vietnam's hydrocarbon resources, mainly gas, and significant discoveries have recently been recorded there, Eni said.
Eni will carry Neon Energy and KrisEnergy for 800 sq km of 3D seismic and one exploratory well in Block 105, subject to cost caps. Block 105 covers 7,192 sq km in 20-80 m of water in the Song Hong basin off northern Vietnam.
Eni will also carry both companies for 250 sq km of 3D seismic and one exploratory well in Block 120, also subject to cost caps. Block 120 covers 8,469 sq km in 50-1,100 m of water in the northern Phu Kahn basin off central Vietnam. Seismic acquisition is under way on both blocks and is to take 6 weeks.
The timing of exploratory drilling on both blocks depends on completion of processing and interpretation of the 3D data and the availability of suitable rigs.