Italian oil major Eni and Hanoi state player PetroVietnam have signed a production sharing contract for a former Chevron block in the Phu Khanh basin off central Vietnam.
The 6900-square kilometre Block 122 lies in water depths of up to 2000 metres. The PSC is split into two phases lasting seven years altogether.
Chevron held block 122 for several years beginning in 2006 along with Malaysia's Petronas, before the San Ramon, California-headquartered supermajor announced in 2012 it had decided to exit the block after completing evaluation of the acreage.
Milan-headquartered Eni already operates three offshore blocks in Vietnam, including Block 120 in the same basin.
China stakes a territorial claim over areas of the Phu Kanh basin while Vietnam maintains it has a right to a 200-nautical mile economic exclusion zone around its coast.