Eni offloads $1bn+ Indonesian gas stakes to Pertamina and Medco
Italian major divests 10% interests in seven offshore PSCs to Indonesia’s Pertamina and MedcoEnergi in deals worth an.
Eni has struck two binding agreements to sell 10% interests in seven offshore production sharing contracts (PSCs) in Indonesia to state-owned Pertamina and regional energy group MedcoEnergi, marking a strategic reshuffle of its regional portfolio.
Under the first deal, Pertamina will acquire 10% stakes in the East Sepinggan, North Ganal, and Rapak PSCs, all located offshore East Kalimantan in the Kutei Basin. The assets include the producing Merakes and East Merakes gas fields, alongside the Geng North and Gehem discoveries, which are being developed through the North Hub project.
The second agreement sees MedcoEnergi take 10% non-operated stakes in the West Ganal, East Ganal, Ganal, and Muara Bakau PSCs. This portfolio encompasses the producing Jangkrik field, the Maha, Gendalo, and Gandang developments, part of the South Hub project, and the recently discovered Geliga gas field. MedcoEnergi highlighted the deal as a move to expand its exposure to Indonesia’s LNG supply chain, adding both producing and exploration assets to its books.
Natural Gas
Why Eni is restructuring its Indonesian portfolio: Pertamina
The disposals are part of Eni’s broader regional strategy, following the creation of Searah, an independent 50/50 joint venture with Malaysia’s Petronas established in June 2024. Searah operates 14 Indonesian and five Malaysian gas-producing and development assets, with current production hovering around 350,000 barrels of oil equivalent per day (boe/d).
Eni major continues to directly operate the Peri-Mahakam and Makassar Strait PSCs, as well as the recently awarded Sapukala deepwater exploration block, ensuring it maintains a foothold in Indonesia’s upstream sector.
By increasing its stake in East Sepinggan and gaining access to North Ganal and Rapak, Pertamina strengthens its position in the Kutei Basin, a region critical to Indonesia’s gas production and LNG exports.
What the deals mean for Indonesia’s energy sector
The transactions, though modest in scale, carry broader implications for Indonesia’s energy landscape. The North Hub and South Hub projects, both designated as National Strategic Projects, are expected to play a pivotal role in meeting Indonesia’s growing gas demand, particularly for power generation and industrial use.
Eni, meanwhile, retains substantial exposure to Indonesia through its 50% stake in Searah and its direct operations in the Peri-Mahakam and Makassar Strait PSCs. The company’s focus on gas aligns with Indonesia’s energy transition goals, as the government seeks to reduce coal dependence and expand the use of cleaner fuels.
Completion of both deals remains subject to customary governmental and regulatory approvals, a process that could take several months. While no transaction values were disclosed, industry analysts estimate the combined stakes could be worth upwards of $1 billion, given the scale of the assets involved and the strategic importance of the Kutei Basin. The deals also reflect a broader trend of portfolio optimisation among international oil companies, as they seek to reallocate capital toward higher-return projects and decarbonisation initiatives.
For stakeholders in Indonesia’s energy sector, the agreements underscore the country’s attractiveness as an investment destination, despite regulatory complexities and competition from other regional players. The involvement of Pertamina and MedcoEnergi in offshore projects could pave the way for further collaborations between international majors and local firms, ensuring a more balanced and sustainable development of Indonesia’s hydrocarbon resources.
As the deals progress toward finalisation, industry observers will be watching closely to see how they influence Indonesia’s gas production trajectory and its ability to meet both domestic and export demand. Through Searah targeting 500,000 boe/d by 2028, the stakes are high for all parties involved, and the success of these transactions could set the tone for future investments in the region’s energy sector.
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