Energy, Oil & Gas

Eni agrees to sell Indonesian upstream interests to Pertamina, Medco

San Donato Milanese (Milan)
Eni agrees to sell Indonesian upstream interests to Pertamina, Medco

Eni has signed two binding agreements to sell 10 per cent interests in selected Indonesian upstream assets to state-owned Pertamina and energy company Medco, following the launch of Searah, its 50/50 joint venture with Petronas.

Under the first agreement, Eni will sell its 10 per cent interests in the East Sepinggan, North Ganal and Rapak production sharing contracts (PSCs) to Pertamina, Indonesia’s national energy company and largest oil and gas producer.

The assets include the producing Merakes and East Merakes gas fields, as well as the Geng North–Gehem gas discoveries being developed through the North Hub project, designated a National Strategic Project.

Under the second agreement, Eni will transfer its 10 per cent interests in the West Ganal, East Ganal, Ganal and Muara Bakau PSCs to Medco.

These assets include the producing Jangkrik field, the Maha, Gendalo and Gandang gas projects under development as part of the South Hub project, and the recently announced Geliga gas discovery.

Eni said the transactions reflect value generated through exploration and development activities in the Kutei Basin. Discoveries at Geng North and Geliga have identified more than 10 trillion cubic feet (Tcf) of gas and 650 million barrels of condensate.

Final investment decisions for the North Hub and South Hub projects were announced in March.

Completion of both transactions remains subject to customary governmental and regulatory approvals.

Eni has operated in Indonesia since 2001 and maintains an upstream portfolio covering exploration, development and production.

Since June 2026, its Searah joint venture with Petronas has combined their portfolios and expertise across Indonesia and Malaysia.

Searah holds 19 gas-producing and development assets, including 14 in Indonesia and five in Malaysia. It currently produces around 350,000 barrels of oil equivalent per day (boe/d), with a target of exceeding 500,000 boe/d by 2028. -OGN/TradeArabia News Service