Eni Farms out Block to Neptune

Italy’s Eni has signed an agreement to sell 20% stake in East Sepinggan area offshore Indonesia to privately-held Neptune Energy, it said July 26.

Eni will continue to be the operator of the area which is offshore East Kalimantan and includes Merakes development and Merakes East discovery. The agreement is subject to the necessary regulatory appovals. Eni announced the final investment decision for Merakes development and the discovery of Merakes East in December 2018.

Eni and Neptune Energy are already partners in the Muara Bakau area, which includes the Jangkrik field, in the Kutei Basin, offshore East Kalimantan, where Eni is the joint venture operator with 55%, Eni said.

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 1500 metres of water and connected to the Jangkrik floating production unit (FPU). 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, Eni added.

Eni said the sale, once completed, would help to align existing projects with the development of Jangkrik in a way that made use of the facilities and so maximised the value to both JV partners and the government.