Full Breakdown
Eni Sells Indonesian Gas and Oil Stakes to Pertamina and Medco Energi
By Drooid · · How we work
Deal Overview
On October 12, Italy’s Eni announced two binding agreements to divest 10 % interests in seven Indonesian production-sharing contracts (PSCs). One transaction transfers a 10 % stake in the East Sepinggan, North Ganal and Rapak blocks to Pertamina Hulu Energi, raising Pertamina’s participation in East Sepinggan to 25 %. The second conveys a 10 % stake in the West Ganal, East Ganal, Ganal and Muara Bakau blocks to Medco Energi.
Assets Involved
The assets sold to Pertamina include the producing Merakes and East Merakes gas fields and the Geng North and Gehem gas discoveries, which are being developed under the North Hub gas project—a National Strategic Project. The assets transferred to Medco comprise the producing Jangkrik field, the Maha, Gendalo and Gandang gas projects within the South Hub project, and the recently announced Geliga (also reported as Geligagiant) gas discovery.
Eni reported that the Geliga discovery contains an estimated 5 trillion cubic feet of gas and 300 million barrels of condensate. In a separate statement, Eni said recent exploration successes at Geng North and Geliga have identified more than 10 trillion cubic feet of gas and 650 million barrels of condensate.
Strategic Implications
Analysts note that the transactions increase Indonesian state-owned Pertamina’s control over domestic gas resources and align all stakeholders for timely development of the North and South Hub projects. The deals are expected to support the outlook for the Bontang LNG plant and bolster Indonesia’s energy security. Wood Mackenzie’s research director highlighted that greater Indonesian involvement should improve efficiency and accelerate project timelines.
Official Statements & Responses
“This transaction complements our existing Indonesian portfolio and expands our presence into an established LNG value chain,” — Ronald Gunawan, Medco Energi's CEO
Data & Statistics
- 10 % stake sold to Pertamina; 10 % stake sold to Medco.
- Seven PSCs affected across the East Sepinggan, North Ganal, Rapak, West Ganal, East Ganal, Ganal and Muara Bakau blocks.
- Gas reserves: 5 trillion ft³ (Eni) and >10 trillion ft³ (Eni’s later claim).
- Condensate: 300 million barrels (Eni) and 650 million barrels (Eni’s later claim).
The transactions are subject to customary governmental and regulatory approvals before completion.