Pertamina and Medco take slices of Eni’s Indonesia offshore assets

Italian giant Eni has agreed to sell 10% interests in seven offshore production sharing contracts in Indonesia to Pertamina and MedcoEnergi as it reshapes its portfolio after creating its Searah joint venture with Petronas.

The company will sell Pertamina 10% stakes in the East Sepinggan, North Ganal, and Rapak PSCs, all located offshore East Kalimantan in the Kutei Basin. The assets include the producing Merakes and East Merakes gas fields and the Geng North and Gehem discoveries being developed through the North Hub project.

Pertamina will increase its East Sepinggan interest from 15% to 25% and take 10% interests in North Ganal and Rapak.In a separate deal, Medco will acquire 10% non-operated stakes in the offshore West Ganal, East Ganal, Ganal, and Muara Bakau PSCs. The portfolio includes the producing Jangkrik field, the Maha, Gendalo, and Gandang developments and the recently discovered Geliga gas field.

Medco said the acquisition would expand its exposure to Indonesia’s LNG supply chain and add producing, development and exploration assets.No transaction values were disclosed. Both deals remain subject to government and regulatory approvals.

The disposals were already built into Eni’s restructuring of its regional portfolio. Earlier this year, the company said a 10% interest in Indonesian assets being contributed to Searah would remain outside the joint venture ahead of a planned third-party sale.

Eni will retain substantial exposure to Indonesia after the transactions. It continues to own 50% of Searah alongside Petronas, which operates 14 Indonesian gas-producing and development assets as part of a 19-asset regional portfolio.

Outside Searah, Eni directly operates the Peri-Mahakam and Makassar Strait PSCs and holds 100% of the recently awarded Sapukala deepwater exploration block offshore East Kalimantan.

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