Published: July 31, 2023 |

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Italian energy company Eni has agreed to acquire Chevron’s interests and operatorship in certain production blocks in the Kutei Basin, offshore East Kalimantan province, Indonesia.

Under the agreement, Eni will acquire a 72 percent stake in Makassar Straits Block and a 62 percent stake each in Ganal and Rapak Blocks, in which the Italian company already owns a 20 percent interest in the two blocks as a non-operator.

The acquisition of Chevron’s interests will allow Eni to advance the development of the Gendalo and Gandang gas project in the Ganal Block, near Jangkrik FPU.

The gas project, with estimated natural gas reserves of approximately 2TCF, is being developed as part of the Indonesia Deepwater Development (IDD).

Eni’s acquisition is subject to customary governmental and regulatory approvals.

“This is in addition to the producing Bangka gas field, the Gehem and Ranggas discoveries and the significant exploration potential also included in the northern part of the asset, which therefore represents a further relevant consolidation for Eni operations in the East Kalimantan area,” Eni said in a statement.

The acquisition of Chevron’s assets will strengthen Eni’s position in Indonesia and allows the company to advance the development of its IDD project.

Eni will use its footprint in the East Kalimantan area, along with the synergies with its Jangkrik infrastructures, existing Bontang LNG facility, and the domestic gas market, for the project.

Also, the acquisition is consistent line with the company’s energy transition strategy for increasing the share of natural gas production to 60 percent by 2030.

Recently, Eni signed an agreement to acquire Neptune Energy, which holds a significant presence in Indonesia and the potential to support its operations in East Kalimantan.

Source: NS Energy

Eni is an integrated energy company with more than 32,000 employees in 62 countries around the world. In 2020, the company launched a new strategy, further accelerated in the following years, that will enable it to reach the target of zero net emissions by 2050 and to provide a variety of fully decarbonized products, combining environmental and financial sustainability, focusing on the technological leadership that has been built up over years of research and innovation.

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