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BW Businessworld

Essar Energy To Sell Stake In Vietnam Block

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India-focused Essar Energy Plc said it agreed to sell a 50 per cent stake in an offshore gas exploration block in Vietnam to Italian oil major Eni SpA.

Eni will assume operator status for the block under the terms of the transaction.

Further investment is required to establish gas reserves in the block and no gas is being produced at present, Essar Energy said.

Block 114 is located in shallow waters off the coast of Vietnam and has undiscovered inplace resources of about 1 trillion cubic feet of gas, according to Essar Energy's website.

The company was not immediately available to comment on further details of the transaction, including the value of the deal.

Shares in Essar Energy - 77 per cent-owned by privately held Indian conglomerate Essar Group - closed at 122 pence on Friday on the London Stock Exchange.