Spain’s Repsol Exploracion SA has agreed to acquire the 5% interest in Vietnamese Block 07/03 owned by Pan Pacific Petroleum NL, Sydney, for $5 million.
Repsol bought all the shares in Pan Pacific subsidiary Pan Pacific (Vietnam) Pty. Ltd., which holds the interest in the block in the Nam Con basin in the South China Sea.
The deal is subject to Pan Pacific shareholder approval.
A successful deal completion will leave Pan Pacific with no debt and assets valuing $20 million, including $16 million in cash.
Executive Director Grant Worner says Pan Pacific will have the freedom to deploy its capital in a range of investment opportunities rather than committing to and relying on a single investment that is larger than the company’s existing funding capabilities.
The Vietnamese sale follows on the heels of Pan Pacific’s sale of its 15% interest in Tui oil field offshore New Zealand to Malaysian company Tamarind Classic Resources (OGJ Online, Feb. 15, 2017).