Eni farms in to Vietnam blocks

Italian energy giant ENI logo is pictured during the presentation of results and strategy press conference at ENI's headquarters in Milan, on February 15, 2008. Enel reported today that its 2007 adjusted net profit fell 9.0 percent to 9.47 billion euros (13.82 billion dollars) as a strong euro and higher costs more than offset rising oil prices. AFP PHOTO DAMIEN MEYER

Eni: the Italian giant has signed a farm-in agreement to earn a 50% stake in two blocks off Vietnam

DAMIEN MEYER

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Josh Lewis

 25 June 2012 03:05 GMT

Singapore’s KrisEnergy and Australia’s Neon Energy have signed farm-out agreements which will see Italian giant Eni take a 50% stake in two blocks off Vietnam.

Under the agreement Eni’s wholly owned subsidiary, Eni Vietnam, will take an equal 25% share from both KrisEnergy and Neon in Block 105-110/4 and Block 120.

In exchange Eni will pay the cost of gathering 800 square kilometres of 3D seismic in Block 105 and the cost of a 250 square kilometre shoot over Block 120.

The Italian company will also fund the drilling of one exploration well on each block.

Upon completion of the farm-out Eni will hold a 50% operated interest while KrisEnergy and Neon will each hold a 25% interest.

“We…

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