Eni widens into Indonesia and especially in the gas: the group led by Claudio Descalzi announced theacquisition of the investments (including the Operatorship, i.e. the operational management) of Chevron, in the Kutei Basin, East Kalimantan, offshore of Indonesia. An operation which, according to the oil giant, has a particularly important significance in view of its growing commitment to gas.
Closing of the transaction is subject to governmental and regulatory approvals. In MY BAG il title Eni it lost 0,81% to 13,70 euros per share even if the price of Brent (82,22 dollars a barrel) remained close to the highs of the last quarter. With the significant contraction in crude oil prices in the first half of 2023, however, analysts expect a decline in the Italian group's profit. Eni will publish i results for the second quarter of 2023 next July 28 before the market opens.
Eni: the acquisition of Chevron's assets in Indonesia
In detail, the acquired blocks are that of Ganal Psc (here the US giant has 62%), Rapak Psc (still 62%) e Makassar Straits Psc (72%). In two of these blocks, namely Ganal and Rapak, Eni already owns a 20% stake as a non-operator.
According to Eni, the acquisition is an “important step because it will speed up the development of the project Indonesia Deepwater Development (Idd), which located in the Makassar Strait, involves the Bangka, Gendalo and Gehem gas fields.
Added to this are the Bangka gas field in production, the Gehem and Ranggas discoveries and the "significant exploration potential also included in the northern part of the asset, which therefore represent an important further consolidation of Eni's activities in the East Kalimantan area".
Eni's presence in Indonesia
But what bond is there between Eni and Indonesia? The first exploration agreement of the oil giant in the Asian country dates back to 1968; the company returned to the country in 2001 with exploration and production activities. Current net production is approximately 80 boe/day.
According to data relating to the last quarter of 2022, theAsia represents one of the strategic areas for Eni's gas production, even if far from the African regions: it is in fourth place after Egypt, Northern Africa e Sub-Saharan Africa.
With the acquisition of Chevron's assets in Indonesia, the six-legged dog wants to exploit "its strong presence in the East Kalimantan area and the synergies with the Jangkrik infrastructure operated by Eni, with the plant liquefied natural gas (LNG) by Bontang and with the domestic gas market”.
Jangkrik so far it has been Eni's flagship project in the country, which has an FPU there, a floating production unit, connected to the 10 submarine wells of the field, part of the Muara Bakau block, one of the largest in the country, operated by Eni with a 55% stake. Bontang, on the other hand, is the liquefaction plant located near Jangkrik: the first load of Eni-branded LNG in the area left from there in 2017.
The strategic importance of gas for Eni
Eni claims that the acquisition is “fully in line with Eni's strategy energy transition of society, of which gas and LNG are fundamental pillars, to increase the share of natural gas production to 60% by 2030, in line with the global demand for affordable, low-carbon and affordable energy”.
Without contracting that Eni has recently acquired the British company Neptune Energy which has a strong presence in Indonesia and excellent integration with Eni's operations in East Kalimantan. Also on the occasion of that acquisition, worth 4,9 billion, the CEO Descalzi had underlined the strategic role of gas for the Italian group: “We believe that gas is a crucial bridge energy source for the global energy transition”.
