Eni Strengthens Position in Indonesia with Chevron's Assets Acquisition
Posted 26/07/2023 13:55
Italian major Eni SPA has expanded its presence in Indonesia through the acquisition of interests in three Indonesian production sharing contracts (PSC) for assets in the Kutei Basin offshore East Kalimantan from Chevron. The acquisition includes operatorship of three blocks: Ganal PSC (Chevron 62 percent), Parak PSC (Chevron 62 percent), and Makassar Straits PSC (Chevron 72 percent). Eni already holds a 20 percent non-operating interest in the Ganal and Rapak blocks.
With the acquisition of Ganal PSC, Eni gains the opportunity to fast-track the development of the Gendalo and Gandang gas project, part of the Indonesia Deepwater Development (IDD). This project, located close to the Jangkrik Floating Production Unit, holds an estimated 2.0 trillion cubic feet of natural gas reserves. The deal also includes the producing Bangka gas field, Gehem and Ranggas discoveries, and exploration potential in the northern part of the asset, consolidating Eni's operations in the East Kalimantan area.
Eni's focus on gas and liquefied natural gas (LNG) aligns with its energy transition strategy, aiming to increase the share of natural gas production to 60 percent by 2030. This strategy capitalizes on the growing global demand for accessible, low-carbon, and affordable energy. The company has also recently made another acquisition in Indonesia, reaching an agreement with Var Energi to acquire assets comprising Neptune Energy's entire portfolio, excluding operations in Germany and Norway.
Eni has a longstanding history of exploration in Indonesia since 1968, and its current net production in the country amounts to approximately 80,000 barrels of oil equivalent per day. The acquisition of Chevron's assets in the Kutei Basin further strengthens Eni's position and supports its efforts to expand its natural gas production capacity in line with its energy transition goals.