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Eni has completed the transfer of a 20% stake in the East Sepinggan area, offshore East Kalimantan, Indonesia, to Neptune Energy.

The sale has been executed between the subsidiaries Eni East Sepinggan and Neptune Energy East Sepinggan.

The East Sepinggan area contains the Merakes development and Merakes East discovery. The Merakes field is located in 1,500m water depth, 35km north-east of the Jangkrik Floating Production Unit (FPU).

Gas from the FPU will then be shipped through the existing pipelines from the Jangkrik FPU to the Bontang LNG facility operated using the existing facilities of Jangkrik field and East Kalimantan transportation network.

Eni holds a 65% participating interest in the area and will continue to be the operator of the East Sepinggan. The remaining participating interests will now be owned by PT Pertamina Hulu Energi East Sepinggan and Neptune Energy East Sepinggan with 15% and 20% interests respectively.

Eni and Neptune Energy were already joint venture (JV) partners in various upstream projects in Indonesia such as the Muara Bakau area off East Kalimantan, which includes the Jangkrik field in the Kutei basin in Indonesia. Eni is the JV operator with 55% participating interest in the field.

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By GlobalData

Eni said in a statement: “This transaction confirms once again the success of Eni’s ‘dual exploration’ strategy, which consists of selling minority stakes in its exploration successes, while maintaining control and operatorship, in parallel to the fast track development of discovered reserves.

“Through this strategy, which allows accelerated monetisation of the exploration successes, Eni has been able to cash in more than $10bn from 2013 to 2019.”

In Indonesia, Eni is in operation since 2001 and possesses a large portfolio of assets in exploration, production and development. The company’s production activities in the country are located in the Kutei Basin, East Kalimantan, and in the Muara Bakau working area that provides an average production in excess of 600mmscfd.