Eni to explore for shale oil in Vietnam

Signs JV agreement with state-owned PetroVietnam for exploration projects.

Italian major Eni SpA and PetroVietnam will jointly explore for coal bed methane and shale oil in Vietnam. Studies to confirm Vietnam's unconventional hydrocarbon potential will be carried out by both firms.

Last Jan. 21, both companies signed a memorandum of understanding that allowed PetroVietnam to acquire shares in international areas and blocks where Eni owns the rights to exploration and development.

Eni has been awarded rights to participate in offshore blocks 114,120 and 105-110/04. It will gegin exploratory drilling work this June.

Eni gained access into blocks 105-110/04 and 120 when it purchased 25% stake of the blocks from Neon Energy and KrisEnergy in June 2012.