MONTREAL (Oil Monster): Eni has signed two binding agreements to sell 10% interests in seven Indonesian upstream production-sharing contracts to Pertamina and Medco, expanding local participation in major gas developments across East Kalimantan.
The assets include producing fields, large gas discoveries and projects under development through the North Hub and South Hub in Indonesia's Kutei Basin.
Financial terms were not disclosed. Completion of both transactions remains subject to customary government and regulatory approvals.
Under the first agreement, Eni will sell Pertamina 10% interests in the East Sepinggan, North Ganal and Rapak production-sharing contracts.
The portfolio includes the producing Merakes and East Merakes gas fields as well as the Geng North and Gehem discoveries.
Geng North and Gehem are being developed through the North Hub gas project, which Indonesia has designated as a National Strategic Project.
Pertamina's participation would increase the role of Indonesia's state energy company in one of East Kalimantan's most important emerging gas developments.
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Under the second agreement, Eni will sell Medco 10% interests in the West Ganal, East Ganal, Ganal and Muara Bakau PSCs.
Those assets include the producing Jangkrik field, the Maha, Gendalo and Gandang gas projects under the South Hub development, and the recently discovered Geliga gas field.
Medco said the acquisition would broaden its position in Indonesia's LNG supply chain while adding producing assets, large-scale gas developments and further exploration exposure in the Kutei Basin.
The transactions follow a series of major exploration successes by Eni in Indonesia.
Eni said the Geng North and Geliga discoveries together have identified more than 10 trillion cubic feet of natural gas and approximately 650 million barrels of condensate.
The discoveries have increased the value of Eni's Kutei Basin portfolio and helped support development of new production hubs connected to existing gas and LNG infrastructure in East Kalimantan.
ALSO READ: Eni Strikes Large Gas Discovery at Geliga Offshore Indonesia
Eni and its partners reached final investment decisions for the North Hub and South Hub developments earlier in 2026.
The projects are expected to supply gas into Indonesia's existing infrastructure, including the Bontang LNG complex.
OilMonster previously reported that long-term LNG sales agreements covering approximately 2 million tonnes per annum have been signed for gas produced from the North Hub and South Hub developments.
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The seven PSCs covered by the transactions are operated by Searah, the independent energy company established by Eni and Petronas in June 2026.
Eni and Petronas each own 50% of Searah.
The joint venture combines 19 producing and development gas assets across Indonesia and Malaysia, including 14 in Indonesia and five in Malaysia.
Searah currently produces approximately 350,000 barrels of oil equivalent per day and aims to exceed 500,000 boe/d of sustainable production by 2028.
The transactions represent partial portfolio monetization rather than an exit by Eni from Indonesia.
Eni remains invested in the wider regional portfolio through its 50% ownership of Searah and continues to operate other Indonesian assets directly, including the Peri-Mahakam and Makassar Strait PSCs and the recently awarded Sapukala block.
Eni has operated in Indonesia since 2001 and continues to identify the Kutei Basin as one of its major gas-growth areas in Southeast Asia.
The asset sales also reflect the growing importance of gas development in East Kalimantan.
New production from the North Hub, South Hub and future discoveries could supply domestic demand while supporting LNG exports through existing infrastructure.
Eni has previously said that development of recent Kutei Basin discoveries could also support additional utilization of liquefaction capacity at the Bontang LNG facility.
The Pertamina and Medco transactions must now secure the required Indonesian government and regulatory approvals.
No closing dates or transaction values were disclosed.
Development of the North Hub and South Hub will continue in parallel, while Eni, Petronas and Searah pursue their target of increasing regional production above 500,000 boe/d by 2028.
Which Indonesian assets is Eni selling stakes in?
Eni is selling 10% interests in East Sepinggan, North Ganal and Rapak to Pertamina, and 10% interests in West Ganal, East Ganal, Ganal and Muara Bakau to Medco.
Is Eni leaving Indonesia?
No. Eni remains active in Indonesia, including through its 50% stake in Searah and directly operated exploration assets.
How large are the gas resources linked to the transactions?
Eni says the recent Geng North and Geliga discoveries have identified more than 10 Tcf of gas and approximately 650 million barrels of condensate.
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Source: Eni.
