Eni Moves Into South East Asia's Unconventional Frontier
BMI View: Eni signed an agreement with PetroVietnam in late February under which the pair will jointly explore Vietnam's unconventional potential . South East Asia 's unconventional volumes remain uncertain and Eni could reap the rewards i f such potential was to be proven.
It has not take n Eni long to move beyond the January Memorandum of Understanding (MoU) it signed with PetroVietnam . The initial deal included an agreement that the two companies would work jointly on a variety of projects. Under the deal Eni was told it could intensify its exploration efforts in Vietnam across two additional blocks. In return , PetroVietnam was given the opportunity to join Eni in undertaking oil and gas exploration in several countries, including Venezuela and Mozambique.
On the last week of February 2013, Eni and PetroVietnam signed an agreement to collaborate in assess ing and explor ing Vietnam's unconventional potential. So far, no specific targets or details have been decided. T his agreement will creat e additional upside risk to our forecasts , but only i n the long - term. Interest in the country's unconventional plays is fuelled by t wo main factors:
Firstly , the p otential to extract Coal Bed Methane (CBM) exists in the region. This is particularly true of Indonesia , where C B M reserves are estimated at around 12.7trn cubic meters (tcm) (See our online service, 'Indonesia Oil & Gas Q2 2013 Report') .
Secondly, while there are no widely available estimates of unconventional potential in South East Asia, oil shows from tight reservoir sands in the Cuu Long Basin offshore southern Vietnam have stoked optimism that the region holds unconventional oil potential.
|In Need Of Upside|
|Vietnam Oil (LHC) & Gas (RHC), Production, Consumption & Net Exports|