Soco International, an oil company focused on Vietnam, and as of recently on Egypt, has said its production for the 1Q was in line with expectations. It has also said it is looking at potential M&A opportunities.
Production from the TGT and CNV fields offshore Vietnam net to Soco was 7,025 boepd from 1 January to 30 April 2019, in line with the production guidance issued in February 2019. The Group’s Vietnam production guidance for 2019 remains 6,500-7,500 boepd.
TGT production averaged 17,956 boepd gross and 5,418 boepd net to SOCO. CNV production averaged 6,429 boepd gross and 1,607 boepd net to SOCO.
The capital expenditure budget for Vietnam for 2019 is approximately $33m, of which $21m is allocated to the development work of the TGT and CNV fields, and the remaining $12m for the purchase, processing, and interpretation of seismic data on Blocks 125 & 126 where Soco is the operator with a 70 percent stake.
The 2019 work program at Soco’s Blocks 125 & 126 consists of 2D seismic acquisition of 7,000 km line. Acquisition of new 2D seismic started mid-April and, according to Soco, is progressing well. It is due to be completed by mid-June 2019.
To remind, SOCO last month completed the acquisition of Merlon Petroleum El Fayum Company in Egypt for $136 million in cash and the issue of 65,561,041 new SOCO ordinary shares.
Production from the El Fayum concession averaged 5,551 barrels of oil per day (bopd) from 1 January to 30 April 2019. SOCO anticipates a 2019 exit rate in excess of 6,500 bopd from the El Fayum concession. The company’s goal remains to increase production from the El Fayum concession to 15,000 bopd by 2023, Soco said.
Furthermore, Soco said it was continuing to seek and evaluate M&A opportunities “in line with strict strategic, financial and operational criteria.”
As previously reported, Soco had attempted to buy Ophir Energy, but had its all-share proposal was rejected in January. Ophir was then acquired by Indonesia’s Medco.
Offshore Energy Today Staff
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