Italy’s Eni has started drilling a key shallow-water exploration well a short distance from its large Ken Bau discovery offshore Vietnam.
The Dan-Day-1X well is being drilled in Block 114 in the Song Hong basin where last year the Italian major confirmed the presence of a giant gas and condensate field with its Ken Bau-2X probe.
Ken Bau was one of the largest discoveries made in Southeast Asia during the past two decades.
Preliminary estimates of the shallow-water Ken Bau discovery range between 7 and 9 trillion cubic feet of raw gas with 400 million to 500 million barrels of associated condensate, Eni reported last July.
The discovery is significant as Vietnam’s energy demand will soon overtake its domestic supply. Therefore, Ken Bau’s volumes could provide significant upside to the country’s energy mix.
More success with the Dan Day probe will provide another boost for both Vietnam and Eni.