Neptune Acquires Interests in Offshore Indonesia

Laxman Pai
Monday, July 29, 2019

Neptune Energy East Sepinggan, subsidiary of the European exploration and production company Neptune Energy has agreed to acquire interests from the Eni East Sepinggan Limited, a unit of Eni in the Kutei basin production sharing contracts (PSC) offshore Indonesia.

According to a press release from the Italian multinational oil and gas company, it  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 agreement is subject to the necessary authorizations from Indonesia’s authorities.

The release pointed out that 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% 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 maximize value to both JV partners and the government of Indonesia.

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 announced the FID for Merakes development and the discovery of Merakes East in December 2018 and today’s agreement confirms Eni’s success in attracting third parties’ investments in its high quality projects and exploration discoveries.

Eni has been operating in Indonesia since 2001 and currently has a large portfolio of assets in exploration, production and development. Eni is the operator of East Sepinggan Contract Area through its subsidiary Eni East Sepinggan Limited which holds an 85% Participating Interest while PT Pertamina Hulu Energi East Sepinggan holds the remaining 15%.

Production activities are located in the Kutei Basin, East Kalimantan, mainly through the Jangkrik field, in the Muara Bakau working area, that delivers production in excess of 650 mmscfd.

Categories: Exploration Indonesia Mergers & Acquisitions Offshore Energy Europe Production

Related Stories

Brownfield Output Decline Accelerates, says IEA

PV Drilling Takes Ownership of Noble Corporation’s Stacked Jack-Up Rig

Saipem Bags $1.5B Contract for Türkiye Largest Offshore Gas Field

CNOOC Brings Online Another Oil and Gas Project in South China Sea

CNOOC Brings New Offshore Gas Field On Stream

Valeura Energy, PTTEP Partner Up on Gulf of Thailand Blocks

Pandion Energy Divests Interests in Three Norwegian Assets to Inpex

Dutch Contractor Completes Malaysia’s Largest 'Rig-to-Reef' Decom Project

UK Firm Secures Exploration Extension for Two Blocks off Vietnam

Azeri SOCAR Plans New Agreements with Oil and Gas Majors

Current News

MDL Secures Cable Laying Job in Asia Pacific

Hibiscus Petroleum Starts Drilling at Teal West Field off UK

Yinson Production Nets DNV Approval for New FPSO Hull Design

Hanwha Ocean's Tidal Action Drillship Starts Maiden Job with Petrobras

Petronas to Leverage AI to Expedite Oil and Gas Exploration Activities

Brownfield Output Decline Accelerates, says IEA

PV Drilling Takes Ownership of Noble Corporation’s Stacked Jack-Up Rig

Hanwha Ocean Enlists ABB for Singapore’s First Floating LNG Terminal

Aquaterra Energy Nets Subsea Analysis Contracts with INPEX off Indonesia

POSH Set to Tow Nguya FLNG from China to Eni’s Congo Field

Subscribe for AOG Digital E‑News

AOG Digital E-News is the subsea industry's largest circulation and most authoritative ENews Service, delivered to your Email three times per week

https://accounts.newwavemedia.com