KrisEnergy and Eni take over Neon’s stake in Vietnamese offshore blocks

Singapore:  KrisEnergy, an independent upstream oil and gas company, announced today that Eni Vietnam, as operator of Blocks 105-110/04 (Block 105) and 120 offshore Vietnam, has issued default notices to Neon Energy (Song Hong) regarding the latter's $22.1m outstanding due and unpaid cash calls, including default interests. Under the joint operating agreements (JOAs) for the two blocks, Eni and KrisEnergy as the other partners in the contract areas assumed the costs of the default amount pro rata. Neon Energy had 30 days under the JOAs from the date of the default notices to repay Eni and KrisEnergy their pro rata share of the default amount, together with default interest.

"The Default Notice Period has elapsed and Neon Energy has not effected full payment of the Default Amount, and therefore Neon Energy will be required by Eni and KrisEnergy, to withdraw from the contract areas, pursuant to the JOAs," KrisEnergy said in a release to the Singapore Stock Exchange.

Neon Energy’s 25% working interest will be transferred to Eni and KrisEnergy proportionately, resulting in Eni and KrisEnergy holding 66.66% and 33.33% working interests in both contract areas, respectively. Prior to the latest development, KrisEnergy held a 25% working interest in each of Block 105 and Block 120, with the remaining 50% of each contract area held by Eni and 25% by Neon Energy.  [15/04/14]

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