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Home Energy Company News By Charles Kennedy - Oct 12, 2026, 12:50 AM CDT Italian energy major Eni has signed two binding agreements to sell 10% interests in seven Indonesian upstream production-sharing contracts (PSCs) to Pertamina and Medco, as the company continues to reshape its portfolio following major natural gas discoveries in the Kutei Basin. Under the first agreement, Eni will sell its 10% stakes in the East Sepinggan, North Ganal and Rapak PSCs to Indonesia's state-owned energy company Pertamina. The assets include the producing Merakes and East Merakes gas fields, along with the Geng North and Gehem discoveries, which are being developed under the North Hub gas project.
The North Hub development has been designated a National Strategic Project by the Indonesian government, highlighting its importance to the country's energy sector. Separately, Eni has agreed to sell 10% interests in the West Ganal, East Ganal, Ganal and Muara Bakau PSCs to Indonesian energy company Medco. These blocks include the producing Jangkrik gas field, the Maha, Gendalo and Gandang developments associated with the South Hub project, and the recently announced Geliga gas discovery.
Financial terms of the transactions were not disclosed. Both deals remain subject to government and regulatory approvals. The divestments come after a series of major exploration successes that have strengthened the commercial potential of Indonesia's Kutei Basin.
According to Eni, the Geng North and Geliga discoveries have identified more than 10 trillion cubic feet of natural gas and 650 million barrels of condensate. The company also announced final investment decisions for the North Hub and South Hub developments in March 2026, advancing plans to bring additional gas resources into production. The transactions follow the recent launch of Searah, a 50-50 joint venture established by Eni and Malaysia's Petronas in June 2026 to combine their upstream portfolios across Indonesia and Malaysia.
Searah operates a portfolio of 19 producing and development gas assets, including 14 in Indonesia and five in Malaysia. The venture currently produces approximately 350,000 barrels of oil equivalent per day and aims to exceed 500,000 boe/d in sustainable production by 2028. The stake sales will increase the participation of Indonesian energy companies in major domestic gas developments while allowing Eni to monetize part of the value created through its exploration activities.
Eni, which has operated in Indonesia since 2001, will maintain a presence in the country's upstream sector through Searah and its directly operated Peri-Mahakam, Makassar Strait and Sapukala blocks. By Charles Kennedy for Oilprice.com More Top Reads From Oilprice.com Trump's Russia-Ukraine Energy Ceasefire May Only Cover Oil Refineries Two More Oil Tankers Attacked Near Strait of Hormuz Asian Refiners Ditch U.S. Oil as Supertanker Rates Hit $82 Million Back to homepage Charles Kennedy Charles is a writer for Oilprice.com More Info EXXON Mobil -0.35 Open 57.81 Trading Vol. 6.96M Previous Vol. 241.7B BUY 57.15 Sell 57.00
