The acquisition of Chevron’s 72% stake in Makassar Straits Block, and 62% stake each in Ganal and Rapak Blocks, in which the company already owns a 20% interest as a non-operator, would allow Eni to advance the development of its IDD project
Eni acquires Chevron’s assets offshore Indonesia. (Credit: Nathan Forbes on Unsplash)
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% stake in Makassar Straits Block and a 62% stake each in Ganal and Rapak Blocks, in which the Italian company already owns a 20% 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.
Eni, in its statement, said: “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.”
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% 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.