Business · Energy & Commodities · 1 hr ago
Medco agrees to buy 10% stakes in four East Kalimantan gas contracts
Medco Energi Internasional has agreed to buy a 10% non-operating interest from Eni in four production-sharing contracts in East Kalimantan, Indonesia.
The contracts cover Muara Bakau, Ganal, West Ganal and East Ganal in the productive Kutai gas basin.
They include producing and developing assets, as well as areas for exploration.
The area also includes the recently announced Geliga gas discovery.
The contracts are currently operated by Searah, a new joint venture between Eni and PETRONAS.
Medco says the acquisition would expand its Indonesian portfolio and strengthen its long-term production base and role in the LNG supply chain.
The agreement will take effect only after applicable conditions are met, including approval from the Indonesian government.
Medco Energi Internasional has agreed to acquire 10% non-operating interests in four production-sharing contracts in East Kalimantan.
The contracts are Muara Bakau, Ganal, West Ganal and East Ganal, in the Kutai Basin.
The blocks include producing, development and exploration assets, including the recently announced Geliga gas discovery.
The contracts are operated by Searah, a joint venture between Eni and PETRONAS.
The transaction will take effect only after applicable conditions are met, including approval from the Indonesian government.
- Who
- PT Medco Energi Internasional Tbk and Eni S.p.A.
- What
- Medco agreed to acquire 10% non-operating interests in four production-sharing contracts.
- When
- The agreement was reported on October 12, 2026. The signing date is not stated.
- Where
- The contracts are in the Kutai Basin, East Kalimantan, Indonesia.
- Why
- Medco said the transaction would complement its Indonesian portfolio, expand its LNG supply-chain presence and strengthen its long-term production base.
This story does not have two clearly opposing sides.
This step also strengthens our long-term production base with producing assets and large-scale gas development projects, while opening up exploration potential in the highly prospective Kutai Basin, thanks to recent exploration success and various promising prospects in the future
CNBC Indonesia reported that Medco had signed an agreement with Eni to acquire the interests.
The transaction will take effect, including subject to approval from the Indonesian government.
- Stake
- 10% non-operating interest in each contract
- Contracts
- Muara Bakau, Ganal, West Ganal and East Ganal
- Basin
- Kutai Basin, East Kalimantan
- Operator
- Searah, a joint venture between Eni and PETRONAS
- Condition
- Indonesian government approval is among the required conditions for the transaction to take effect
Sources
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