Malaysia’s Petronas sold its stakes in three offshore Vietnam blocks to SapuraKencana Thursday for $400 million.
The deal includes a 50 percent interest in blocks 01/97 and 02/97, a 40 percent interest in the production sharing agreement for block 10/11.1 and a 36.8 percent interest in the production sharing agreement for block 46.
Block 1/97 and 2/97 hold the Than Long and Dong Do shallow water fields, located about 100 miles off Vietnam’s southeast coast.
The fields are operated by the Lam Son joint venture with Petrovietnam holding a 50 percent stake and PC Vietnam holding the remaining 50 percent stake.
Block 10/11.1 is located in Nam Con Son Basin in a proven petroleum system.
The shallow water block contains the “under developed” Gua Chua, Ca Cho field and the Gua Nigua field, SapuraKencana said.
The block is operated by the Con Son consortium that includes Petrovietnam, Petronas and Pertamina.
SapuraKencana said there several “low risk” exploration projects in the block.
Block 46 is located in the Cai Nuoc Basin and is operated by Canada’s Talisman.
Gas and condensate production started at the block in September 2003.
Keys fields in the block include the currently producing Cai Nuoc field and the Hoa Mai discovery.
The production sharing contract for block 46 was signed in 1990 and has a life of 25 years.
The transaction is effective as of January 1, 2014.
Malaysia-based SapuraKencana will take the net revenue from the blocks starting from the effective date.