Essar eyes business beyond $300 million block in Vietnam

NEW DELHI: The Mumbai-based Essar has jointly with ENI of Italy pumped $300 million into Vietnam’s offshore Block 114, south-east Asia’s largest discovery in two decades, as the Indian group promoted by the Ruia family looks to expand its business partnerships in that country.
In the backdrop of this investment, Essar promoters Ravi Ruia and Prashant Ruia discussed further investment opportunities and areas of collaboration with Vietnam’s top leadership, the company said on Sunday.
Essar Exploration and Production Ltd is partnering ENI in Block 114, which is estimated to have two billion barrels of oil and gas resources. “Having invested over $300 million in Block 114, Essar and ENI are committed to a fast track development of the Ken-Bau basin while exploring for more hydrocarbons in the Dan Day basin and other prospects. Development of Block 114 is of utmost importance for energy interests of Vietnam,” Essar said.
The statement said the Essar delegation led by the promoters met Vietnam National Assembly chairman Vuong Dinh Hue, deputy prime minister, who is also the president and CEO of PetroVietnam), Le Manh Hung besides senior officials.
The statement quoted Hue as saying, “Vietnam supports and will create conditions for Indian companies to continue their long term presence and expand operations related to oil and gas exploration and exploitation in its continental shelf”.
The statement quoted Essar Capital director Prashant Ruia as saying, “We are extremely excited about our business partnerships with Vietnam. The bilateral trade between both the countries has been steadily growing over the past two decades. 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”.