Malaysian firm acquires 30 percent interest in Vietnamese oilfield

By Dam Tuan August 11, 2016 | 02:53 am PT

Mitra Energy Inc. has decided to dip its beak into a strategic offshore oilfield.

Malaysia’s Mitra Energy has reached an agreement with Japan's Teikoku Oil to acquire a stake in the Nam Con Son basin for $14.3 million.

Mitra Energy Inc. has just announced that the wholly owned subsidiary of Mitra in Vietam has signed a deal with Teikoku Oil Co. Ltd, a subsidiary of Inpex Corporation, for working interests in Blocks 05-1b and 05-1c, according to Mitra’s official press release.

The Kuala Lumpur-based firm said: “The proposed Block 05-1 acquisition is consistent with New Mitra’s strategy to acquire near-term development projects with low-risk upside potential.”

Mitra acquired two blocks in a strategic oilfields of Vietnam. Photo by Nguyen Truong Son/VnExpress Photo Contest

Mitra acquired two blocks in a strategic oilfield off Vietnam. Photo by Nguyen Truong Son/VnExpress Photo Contest

The two blocks are located 350 kilometers off the coast of Vietnam in the Nam Con Son basin at a depth of 120 meters. They have already been fully appraised and are close to the Nam Con Son gas pipeline and existing production facilities.

A. Paul Blakeley, executive chairman of Mitra, said: “This is a very important follow-on acquisition to the recently announced Stag Field deal in the Carnarvon basin. Having secured a solid operating platform at Stag, we now want to build out the portfolio with further highly accretive acquisition opportunities, in our target areas, which will deliver a strong and sustainable business in Asia Pacific.”

These gas discoveries are located in strategic area and play an important role in supplying gas to power plants in southeast Vietnam. The other parties with interests in the blocks are Idemitsu Oil and Gas and JX Nippon Oil & Gas Exploration Corporation with a 35 percent working interest of each.

“The acquisition plays to our deep knowledge of the Vietnam gas market and extensive experience of operating in this highly prolific hydrocarbon basin. We look forward to working with Idemitsu to share our experience and thereby providing greater certainty towards delivering optimal outcomes for the project for the benefit of all stakeholders, including the Government of Vietnam,” Blakely added.

Mitra Energy Inc. is an oil and gas company currently engaged in exploration, appraisal and pre-development activities in the Philippines, Vietnam and Indonesia.

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