It is no secret that Shell wants to enter Vietnam and has a...

It is no secret that Shell wants to enter Vietnam and has a great interest in entering Vietnam's upstream and downstream natural gas markets, including liquefied natural gas (LNG).

Petro Vietnam dominates the natural gas sector and Shell has been in discussions with Petro Vietnam. This has advanced to the point that Shell is in the process of signing a memorandum of understanding with Vietnam.

With some of Petro Vietnam’s foreign partners are majors such as TNK-BP, Chevron, Petronas, Thailand's PTTEP, Talisman, ExxonMobil & Total.

Late last year I was talking with Nen and we got to talking about a T/O and this was in relation to Vietnam. The view was that there would be approach to a T/O until 105 and 120 was known. The point of view was for a T/O the buyer would want to know what they had and the future potential of assets.

I suspect that when the announcement is made for 105 and 120, companies like Shell who want to enter the market in Vietnam would run the ruler over Neon. This might be a bit left of field but what isn’t left of field is ENI’s desire to have the lot. When this happens Kris would like nothing more than to lift its share to 50% and ENI being the size they are would see 75% as a great start to owning the lot and eventually take Kris out of the relationship.

Bottom line, I suspect ENI looks certain to take NEN out if we are around 5Tcf on 105 and KC's play maker at 120 lands 400mmboe it will be game on.

All we need to realize the full value is one other to enter into the auction.