Essar Energy said it its subsidiary Essar Exploration & Production has agreed to sell a 50% stake in a gas exploration block 114 offshore Vietnam to ENI International.

The company said the transaction is in accordance with its strategy for its exploration and production business of introducing strategic partners to help manage risk and focusing on the development of its core assets.

Essar Energy had acquired a 100% stake in block 114 in 2007 and entered into a production sharing contract with the Vietnam Government in 2010.

The company said additional investment is needed to establish gas reserves in the block and no gas is being produced at present.

The transaction needs the approval from the Vietnamese Government following which ENI will become for the block.