Essar jointly invests $300 million in Vietnam's offshore hydrocarbon block

In a bid to increase its investment opportunities overseas, the Essar group via its exploration entity Essar Exploration and Production Ltd (EEPL) is investing in hydrocarbon block 114, located offshore of Central Vietnam.

To be developed jointly with Ente Nazionale Idrocarburi (ENI), an investment of $300 million has been made in the project so far. ENI is the operator of the block with 50 per cent shareholding.

This block is the largest hydrocarbon find in South East Asia spanning two decades and has approximately 2 billion barrels of oil and gas resource, said Essar Group in its release today.

"Development of the Block 114 is of utmost importance for the energy interests of Vietnam, while the commercial production of gas and condensate from this block will be a key strategic benefit for the central region of Vietnam", it said.

“Essar is committed to the development of Block 114, making it a significant resource for oil and gas in Vietnam’s economy. We are confident that this block will provide strong impetus for Vietnam to become self-sufficient in its energy requirements in the future," the release quoted Prashant Ruia, director at Essar Capital as saying.

EEPL with ENI will also be exploring more hydrocarbon in the Dan Day basin and other prospects in Vietnam.

Chairman of the National Assembly of Vietnam, H.E. Vuong Dinh Hue, Deputy Prime Minister of Vietnam, Dr Le Manh Hung (President and CEO of Petrovietnam), and members of their senior-level delegation of Vietnam on Friday met with Ravi Ruia and Prashant Ruia along with an Essar delegation to discuss the investments of Essar group and potential collaboration and business opportunities in Vietnam.

Apart from investment in hydrocarbon exploration, Ruias-owned Essar Group is looking at potential collaboration and business investment opportunities in Vietnam in power, petrochemicals, LNG, renewables, and green hydrogen, said an Essar source close to the development without divulging details.