EnQuest Expands Horizons: Acquires Harbour's Vietnam Assets Amid UK Tax Struggles

EnQuest, a British energy group, is acquiring Harbour Energy's Vietnam business for $84 million. The company's move comes as a response to increased UK taxes, aiming to diversify and expand beyond its North Sea focus. EnQuest CEO highlights the potential of Southeast Asia investments.

British energy firm EnQuest is set to acquire Harbour Energy's business in Vietnam, as announced on Wednesday. The purchase, valued at $84 million including debt, marks a strategic shift for the North Sea-centered company in light of heightened UK taxes.

The transaction involves a 53% equity interest in Vietnam's Chim Sao and Dua production fields, with completion expected by the second quarter this year. North Sea operators argue that the UK windfall tax, introduced after 2022's energy price surge, could impede investments in the mature oil and gas region.

Many companies have opted to divest or merge while exploring international ventures. EnQuest CEO Amjad Bseisu has expressed interest in Southeast Asia, citing attractive capital returns, amidst discontent over the UK's tax policies. The deal exemplifies EnQuest's growth strategy and disciplined M&A approach.

(With inputs from agencies.)