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Repsol revs up interest in Vietnam field

Spanish operator buys minor share in Ca Rong Do field from Australian company

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.