Eni acquires Chevron assets in Indonesia

The Italian company Eni signed an agreement with Chevron Corp to acquire a stake in Indonesia Deepwater Development.

The Chevron project operator announced its withdrawal from IDD back in 2020. The reason for this decision is the lack of competitiveness in the global upstream asset portfolio.

In June 2023, Indonesian Energy Minister A. Tasrif reported that the government hopes to receive a decision on IDD from Chevron by July of this year, otherwise another strategy will be chosen. At the same time, it was reported that the role of the new IDD operator would be assumed by Italian Eni, which is a minority partner of Chevron on the project together with Chinese Sinopec.

It is noted that the deal is an important step, in particular, to be able to accelerate the implementation of the second phase of the IDD Gendalo – Gehem project at Ganal PSC, near the lightweight floating Jangkrik production facility, with estimated natural gas reserves of approximately 2 trillion ft.

The closing of the transaction is subject to approval by the government and regulatory authorities. The amount of the contract is not disclosed.