Eni Signs Agreement to Sell 10% Interest in 7 Indonesian Oil and Gas Blocks

en.Wedoany.com Reported - On October 12, Italian energy company Eni announced two agreements for the transfer of interests in upstream oil and gas assets in Indonesia, intending to sell 10% participating interests in certain oil and gas blocks to Pertamina Hulu Energi, a subsidiary of Indonesia's state oil company Pertamina, and Medco Energi, respectively. The transactions involve 7 production sharing contract blocks in the Kutai Basin of East Kalimantan, covering producing gas fields, natural gas projects under construction, and exploration assets.

The interests acquired by Pertamina Hulu Energi involve three blocks: East Sepinggan, North Ganal, and Rapak. Among them, North Ganal and Rapak will each acquire a 10% participating interest, while the stake in East Sepinggan will increase from the original 15% to 25%. The relevant assets are located in the offshore area of East Kalimantan and involve deepwater gas development projects being advanced by Eni, including some assets of the North Kutai gas development hub.

Medco Energi will acquire a 10% non-operated participating interest in each of four blocks: Muara Bakau, Ganal, West Ganal, and East Ganal. These blocks include existing natural gas production facilities, development-stage assets, and exploration resources, with the Ganal block covering the Geliga gas discovery. The above four blocks are currently operated by Searah, a joint venture established by Eni and Malaysia's state oil company Petronas, and the interests acquired by Medco do not involve any change in operator responsibilities.

The Geliga gas field is located in the Ganal block offshore East Kalimantan. Exploration results previously announced by Eni indicate that the gas field is estimated to hold approximately 5 trillion cubic feet of natural gas resources and 300 million barrels of condensate resources. The relevant development plan is being advanced around the natural gas production facilities and subsea gathering systems in the Kutai Basin, and subsequent development arrangements involve existing gas field facilities and the Bontang LNG processing system.

Eni has previously made final investment decisions on two deepwater gas development hubs in the southern and northern parts of the Kutai Basin. The southern project involves the Gendalo and Gandang gas fields, with plans to drill 7 production wells and connect them to the existing Jangkrik floating production facility; the northern project involves the Geng North and Gehem gas fields, with plans to deploy 16 production wells and new offshore floating production facilities. Both projects are planned to start production in 2028 and reach a level of approximately 2 billion cubic feet of natural gas and 90,000 barrels of condensate per day in 2029.