State-owned PT Pertamina and PT Medco Energi Internasional Tbk will acquire Indonesian upstream assets operated by Searah Ltd. from Eni SPA.

Pertamina, Indonesia’s national energy company, will acquire 10% interest in the East Sepinggan, North Ganal, and Rapak production sharing contracts (PSCs) covering concessions that play a strategic role in East Kalimantan’s energy infrastructure and upstream gas network, Eni said on Oct. 12.

The assets include producing Merakes and East Merakes gas fields, as well as Geng North–Gehem gas discoveries which are currently being developed through the North Hub gas project, designated as a national strategic project.

Medco will acquire 10% interest in the West Ganal, East Ganal, Ganal, and Muara Bakau PSCs. These assets include producing Jangkrik field, the Maha, Gendalo, and Gandang gas projects being executed as part of the South Hub project, and the recently announced Geliga giant gas discovery.

The transactions follow the recent start-up of Searah and reflect the strong value growth that Eni has generated across Kutei basin in recent years.

Recent exploration successes at Geng North and Geliga have identified more than 10 tcf of gas and 650 MMbbl of condensate.

Together with the final investment decisions announced in March for the North Hub and South Hub projects, these results have created major value for Eni, the operator said.

Searah is an independent 50-50 joint venture between Eni and Petronas.