IDD project's FPU off Kalimantan, Indonesia; Source: Chevron

By taking over Chevron’s assets off Indonesia, Eni enriches its gas and LNG portfolio

Italian energy giant Eni has decided to enhance its oil and gas portfolio further by acquiring Chevron’s Indonesian assets, in line with its energy transition strategy, which features gas and LNG as key pillars. This will enable the firm to come closer to its aim of boosting the share of natural gas production to 60 per cent by 2030, in conjunction with the world demand for accessible, low-carbon, and affordable energy.

IDD project's FPU off Kalimantan, Indonesia; Source: Chevron

Eni disclosed the acquisition of Chevron’s interests, including operatorship, in the Indonesian blocks: Ganal PSC (Chevron 62 per cent), Rapak PSC (Chevron 62 per cent), and Makassar Straits PSC (Chevron 72 per cent), in the Kutei Basin, offshore East Kalimantan.

While Eni already holds a 20 per cent interest as a non-operator in the Ganal and Rapak blocks, the oil major sees this acquisition as “an important step” to fast-track the development of the Gendalo and Gandang gas project, a part of the Indonesia Deepwater Development (IDD) in the Ganal PSC, close to the Jangkrik FPU, with estimated natural gas reserves of approximately 2TCF.

Aside from this, the producing Bangka gas field, the Gehem and Ranggas discoveries, and the significant exploration potential included in the northern part of the asset represent a further relevant consolidation for the Italian player’s operations in the East Kalimantan area.

Therefore, the acquisition of Chevron’s assets in Indonesia will allow Eni to fast-track the development of the IDD project, leveraging its presence in the East Kalimantan area as well as the synergies with its operated Jangkrik infrastructures, the existing Bontang LNG facility, and the domestic gas market. The closing of the transaction is subject to customary governmental and regulatory approvals.

The deal with Chevron comes shortly after Eni revealed an agreement to acquire Neptune Energy, which has a significant presence in Indonesia. The Italian giant decided to scoop up Neptune’s entire portfolio aside from its operations in Germany and Norway. While the German operations will be carved out prior to the completion of this acquisition, the Norwegian assets will be taken over by the oil major’s majority-owned Vår Energi. These deals come with an aggregate enterprise value of $4.9 billion.

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Eni believes that Neptune’s portfolio of gas-oriented assets and operations in Western Europe, North Africa, Indonesia, and Australia is competitive in terms of cost and low operational emissions while being “an exceptional fit,” as it complements its key areas of geographic focus and supports its objective of reaching net-zero emissions (Scope 1 and 2) from the Upstream business by 2030.