Eni boosts gas production plans with Chevron asset acquisition in Indonesia
Italian energy company Eni has announced a significant acquisition of Chevron’s interests in the offshore Indonesian Blocks Ganal PSC, Rapak PSC, and Makassar Straits PSC, located in the Kutei Basin, East Kalimantan. Eni will become the operator of these blocks, where it already holds a 20% non-operating interest in Ganal and Rapak.
The purchase marks a crucial milestone for Eni, especially in terms of hastening the development of the Gendalo and Gandang gas project, a part of the Indonesia Deepwater Development (IDD) in the Ganal PSC. This is located near the Jangkrik FPU and contains an estimated 2TCF of natural gas reserves. The transaction also includes the productive Bangka gas field, the Gehem and Ranggas discoveries, and significant exploration potential in the northern part of the asset, solidifying Eni’s operations in the East Kalimantan area.
Eni expands operations in Indonesia’s Kutei Basin, acquiring Chevron’s assets. Photo courtesy of Petar Milošević/Wikimedia Commons.
Eni’s acquisition of Chevron’s assets in Indonesia is expected to expedite the development of the IDD project, drawing on its robust presence in the East Kalimantan Area. Synergies with Eni-operated Jangkrik infrastructures, the existing Bontang LNG facility, and the domestic gas market will enhance Eni’s position in Indonesia, where the company has a record of successful gas development. This move aligns with Eni’s energy transition strategy, with gas and LNG as vital components, aiming to increase natural gas production to 60% by 2030 in response to the global demand for accessible, low carbon, and affordable energy.
The announcement follows Eni’s recent agreement to acquire Neptune Energy, which boasts a considerable presence in Indonesia and aligns well with Eni’s operations in East Kalimantan. The Chevron acquisition’s finalization is subject to standard governmental and regulatory approvals.
Since 1968, when Eni first signed an exploration agreement in Indonesia, the company has been actively involved in the country. Eni returned in 2001, engaging in exploration and production activities, and currently produces approximately 80 kboe/d.