OREANDA-NEWS. June 29, 2012. The Song Hong Basin is estimated to contain 10% of Vietnam's hydrocarbon resources, mainly gas, and significant discoveries have recently been recorded there.

Eni has signed an agreement with KrisEnergy and Neon Energy for two exploration blocks located offshore Vietnam, in the Song Hong and Phu Khanh basins in the Gulf of Tonkin. The Song Hong Basin is estimated to contain 10% of Vietnam's hydrocarbon resources, mainly gas, and significant discoveries have recently been recorded there.

The agreement is subject to approval from the relevant Vietnamese authorities, and covers  blocks 105-110/04 and 120, where the participating interests will be Eni with 50% as operator, KrisEnergy with 25% and Neon Energy with 25%. The two blocks cover approximately 15,600 square kilometres of acreage.

The near term exploration activity will include the acquisition of 3D seismic surveys and the drilling of two exploration wells.

This agreement, coupled with recent announcements related to significant gas discoveries in Indonesia and the addition of new acreage in Indonesia and Australia, reaffirms Eni's growth strategy in the Far East and Pacific, a region characterized by fast growing economies.