Italy's Eni has signed an agreement for the sale of a 20 per cent participating interest in the East Sepinggan area offshore Indonesia to Neptune Energy Group.
Eni will continue to be the operator of the area which is located in the East Sepinggan area, offshore East Kalimantan in Indonesia, and includes Merakes development and Merakes East discovery.
The sale is subject to the necessary authorisations from Indonesia’s authorities.
This agreement is part of Eni’s unique “dual exploration model” consisting in early monetisation of exploration successes in order to optimize the supply chain while reducing costs.
Eni and Neptune Energy are already partners in the Muara Bakau area, which includes the Jangkrik field, located in the Kutei Basin, offshore East Kalimantan in Indonesia, where Eni is the joint venture operator with 55 per cent participating interest share.
The Merakes development project, included in the East Sepinggan area, consists in the drilling and construction of subsea wells with a dedicated transportation system in 1500m water depth and connected to the Jangkrik Floating Production Unit (FPU), located 35 km North East. The gas production will be shipped to the Bontang LNG plant using also all the other existing facilities of Jangkrik field as well as the East Kalimantan transportation network. This new production will also contribute to the life extension of the plant.
The sale, once completed, will contribute to align existing projects synergic with the development of Jangkrik, making use of its existing facilities in order to maximise value to both JV partners and the government of Indonesia.