Neptune Energy, London, has closed on a farm-in agreement to acquire working interest in a production-sharing contract in the Kutei basin offshore East Kalimantan, Indonesia, from Eni SPA subsidiary Eni East Sepinggan Ltd. (OGJ Online, July 26, 2019). Through its subsidiary Neptune Energy East Sepinggan BV, Neptune has acquired a 20% working interest in the East Sepinggan PSC, where Merakes natural gas field is under development,
Eni, with 65% participating interest, will continue to operate the area. Remaining interests will now be held by PT Pertamina Hulu Energi East Sepinggan and Neptune Energy East Sepinggan BV with 15% and 20% respectively.
The two companies are partners in several upstream projects in Indonesia, namely the Muara Bakau area which includes Jangkrik field in the Kutei basin, offshore East Kalimantan, where Eni serves as joint venture operator with 55% interest.
The Merakes development project, in the East Sepinggan area, consists of drilling and construction of subsea wells with a dedicated transportation system in 1,500 m water depth and connected to the Jangkrik Floating Production Unit (FPU), 35 km northeast. Gas production will be shipped to the Bontang LNG plant using existing Jangkrik field facilities as well as the East Kalimantan transportation network. The new production will contribute to the life extension of the plant.