Recently, an Italian energy company
) and Vietnam's national oil company PetroVietnam have inked an
agreement in Hanoi for jointly exploring the unconventional
hydrocarbons potential in the country.
ENI SPA-ADR (E): Free Stock Analysis Report
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This agreement came shortly after Eni signed a memorandum of
understanding (MoU) with PetroVietnam, which will facilitate the
Italian giant in strengthening its foothold in and outside
The agreement will allow PetroVietnam to expand its international
business and Eni to have the opportunity to procure more blocks
in Vietnam. Eni added that it will offer PetroVietnam
participation in international projects in which it holds
exploration and development rights.
Both the companies are yet to disclose their respective
contributions toward the appraisal costs for the unconventional
plays but are believed to share the costs.
Since mid last year, Eni has been present in Vietnam with 50%
participation and operatorship of three exploration blocks
located in the Song Hong basin in the Gulf of Tonkin. The region
is estimated to hold 10% of the country's hydrocarbon resources.
It was only in January 2013 that Eni got approvals for the
farm-ins to two blocks and drilling is expected to commence by
the middle of this year.
This move is in sync with the company's strategy to strengthen
its traction in Asia where it has already marked its presence by
its recent exploration successes in Indonesia and Pakistan, and
acquisitions in Australia.
Currently, Eni holds a Zacks Rank #4, which is equivalent to a
short-term Sell rating. However, there are other stocks in the
oil and gas sector -
Range Resources Corporation
NGL Energy Partners LP
) - which hold a Zacks Rank #1 (Strong Buy) and are expected to