Eni to sell stakes in seven Indonesian blocks to Pertamina, Medco

what happened

Seeking Alpha reported that Eni said Monday it had reached an agreement to transfer 10% interests in seven Indonesian production-sharing contracts to Pertamina and Medco. The companies did not disclose the financial terms.

Pertamina will acquire 10% of the East Sepinggan, North Ganal and Rapak blocks, lifting its participating interest in East Sepinggan to 25%. The package includes the producing Merakes and East Merakes gas fields, as well as the Geng North and Gehem discoveries. They are being developed through the North Hub gas project, which the Indonesian government has classified as a National Strategic Project.

Medco Energi will take a 10% interest in each of four oil and gas blocks in the Kutai Basin: Muara Bakau, Ganal, West Ganal and East Ganal. Searah, a 50-50 venture between Eni and Malaysia’s Petronas, currently operates the blocks. The assets include the producing Jangkrik field, the Maha, Gendalo and Gandang gas projects under South Hub, and the recently announced Geliga discovery, estimated at 5 Tcf of gas and 300M barrels of condensate.

why it matters

The transaction reshapes Eni’s ownership in Indonesian assets while increasing the role of domestic companies. It covers producing fields, new discoveries and the North Hub and South Hub developments.

instruments