Italian energy giant Eni has embarked on a divestment quest to offload partial interests in selected Indonesian upstream assets to national energy firm Pertamina and natural resources major Medco. The European heavyweight will still maintain significant ownership and operational control in these assets.
Eni’s two binding agreements for the sale of interests in selected Indonesian upstream assets involve key producing fields and high-profile development hubs operated through Searah, the firm's joint venture with Petronas, allowing the Italian giant to monetize significant value from recent deepwater gas discoveries across the Kutei Basin while retaining strategic operations in the region.
The company will sell its 10% interest in the East Sepinggan, North Ganal, and Rapak production sharing contracts (PSCs) to Pertamina, including the producing Merakes and East Merakes gas fields, as well as Geng North–Gehem gas discoveries, which are currently being developed through the North Hub gas project, designated as a national strategic project.
On the other hand, Medco will acquire Eni’s 10% interest in the West Ganal, East Ganal, Ganal, and Muara Bakau PSCs, which entail the producing Jangkrik field, the Maha, Gendalo, and Gandang gas projects being executed as part of the South Hub project, and the recently announced Geliga giant gas discovery. The completion of both transactions is subject to customary governmental and regulatory approvals.
These deals follow the recent start-up of Searah, exploration successes at Geng North and Geliga, which have identified more than 10 trillion cubic feet (tcf) of gas and 650 million barrels of condensate, and the final investment decisions (FIDs) announced last March for the North Hub and South Hub projects.
With a portfolio of 19 gas-producing and development assets, 14 in Indonesia and five in Malaysia, Searah is producing around 350,000 boe/d, aiming to exceed 500,000 boe/d of sustainable production by 2028. Eni directly operates the Peri-Mahakam PSC, the Makassar Strait PSC, and the recently awarded Sapukala block in Indonesia.