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Eni Signs 2 Deals to Sell Stakes in Indonesian Upstream Assets
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Key Takeaways
E is selling 10% stakes in selected Indonesian upstream assets to Pertamina and Medco under two binding deals.
E's Geng North and Geliga discoveries contain more than 10 Tcf of gas and 650 million barrels of condensate.
Searah targets production exceeding 500 Mboe/d by 2028, up from the current level of about 350 Mboe/d.
Eni S.p.A. (E - Free Report) has signed two binding agreements to divest minority interests in selected Indonesian upstream assets to Pertamina and Medco. The transactions involve assets operated by Searah, the 50-50 joint venture between Eni and Petronas. The agreements highlight E's strategy of realizing value from its exploration successes while maintaining exposure to Indonesia's expanding natural gas industry.
Eni to Divest Stakes to Pertamina
Under the first agreement, Eni will transfer its 10% ownership interests in the East Sepinggan, North Ganal and Rapak production-sharing contracts (PSCs) to Pertamina. These assets include the producing Merakes and East Merakes gas fields, alongside the Geng North-Gehem discoveries being developed under the North Hub project.
The transaction allows E to monetize part of its Indonesian gas portfolio while retaining interests in strategically important regional developments.
Medco Agreement Expands Asset Monetization
The second agreement involves selling 10% stakes in the West Ganal, East Ganal, Ganal and Muara Bakau PSCs to Medco.
These blocks encompass the producing Jangkrik field, the Maha, Gendalo and Gandang developments under the South Hub project, and the Geliga gas discovery. The divestment provides another opportunity to unlock value from Eni's established resource base.
Exploration Success Strengthens Eni's Position
Eni's exploration activities in the Kutei Basin have identified significant hydrocarbon resources. The Geng North and Geliga discoveries collectively contain more than 10 trillion cubic feet (Tcf) of gas and 650 million barrels of condensate.
Backed by North and South Hub project investments, the discoveries have enhanced the commercial appeal of E's Indonesian portfolio.
Searah Supports Long-Term Production Growth of E
The newly established Searah venture combines Eni's and Petronas' regional operations across Indonesia and Malaysia.
Searah’s portfolio includes 19 producing and development assets, with current production capacity of around 350 thousand barrels of oil equivalent per day (Mboe/d). The venture targets production capacity to exceed 500 Mboe/d by 2028, strengthening Eni's exposure to regional gas demand.
What Does This Mean for Eni Investors?
The proposed stake sales align with Eni's strategy of optimizing its upstream portfolio by unlocking value from established assets. The transactions are expected to enhance financial flexibility, allowing the company to allocate capital more efficiently and pursue growth opportunities across its operations.
Although financial details remain undisclosed and regulatory approvals are pending, the agreements highlight strong industry interest in Eni's Indonesian assets. Upon completion, the divestments will strengthen the energy giant's efforts to monetize its resource base while maintaining exposure to long-term production growth.
E’s Zacks Rank & Other Key Picks
Eni currently sports a Zacks Rank #1 (Strong Buy).
Shell has a diversified portfolio spanning oil and gas exploration, production, refining, chemicals and LNG operations. The London-based integrated energy giant is benefiting from strong upstream performance, improved refining margins and contributions from its global LNG business. In the second quarter of 2026, SHEL's adjusted earnings increased to approximately $9.8 billion from $6.9 billion in the preceding quarter. Shell's refineries achieved a record utilization rate of 102%, while its LNG Canada project reached full capacity, strengthening Shell's operational performance.
Chevron, headquartered in Houston, TX, has substantial upstream and downstream operations in major global markets. The leading integrated energy company continues to benefit from higher production volumes, improved operating efficiency and ongoing cost-reduction initiatives. In the second quarter of 2026, CVX reported earnings of $12.1 billion, while worldwide production increased 20% year over year. Chevron achieved record U.S. production of nearly 2.1 million barrels of oil equivalent per day and completed its $3 billion annual structural cost-reduction target six months ahead of schedule, supporting its profitability and cash generation prospects.
BP, headquartered in London, operates an integrated energy business covering oil and gas production, refining, marketing and renewable energy activities. The British energy major is focusing on portfolio optimization and asset monetization to improve financial flexibility and streamline its operations. As highlighted in the second-quarter 2026 earnings results, BP completed the divestment of its Gelsenkirchen refinery in Germany and initiated sale processes for the North Sea business and Archaea Energy. These initiatives align with BP's strategy to sharpen its portfolio focus, strengthen balance sheet and direct capital toward higher-return opportunities.
View the Zacks #1 Rank List
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Eni Signs 2 Deals to Sell Stakes in Indonesian Upstream Assets
Key Takeaways
Eni S.p.A. (E - Free Report) has signed two binding agreements to divest minority interests in selected Indonesian upstream assets to Pertamina and Medco. The transactions involve assets operated by Searah, the 50-50 joint venture between Eni and Petronas. The agreements highlight E's strategy of realizing value from its exploration successes while maintaining exposure to Indonesia's expanding natural gas industry.
Eni to Divest Stakes to Pertamina
Under the first agreement, Eni will transfer its 10% ownership interests in the East Sepinggan, North Ganal and Rapak production-sharing contracts (PSCs) to Pertamina. These assets include the producing Merakes and East Merakes gas fields, alongside the Geng North-Gehem discoveries being developed under the North Hub project.
The transaction allows E to monetize part of its Indonesian gas portfolio while retaining interests in strategically important regional developments.
Medco Agreement Expands Asset Monetization
The second agreement involves selling 10% stakes in the West Ganal, East Ganal, Ganal and Muara Bakau PSCs to Medco.
These blocks encompass the producing Jangkrik field, the Maha, Gendalo and Gandang developments under the South Hub project, and the Geliga gas discovery. The divestment provides another opportunity to unlock value from Eni's established resource base.
Exploration Success Strengthens Eni's Position
Eni's exploration activities in the Kutei Basin have identified significant hydrocarbon resources. The Geng North and Geliga discoveries collectively contain more than 10 trillion cubic feet (Tcf) of gas and 650 million barrels of condensate.
Backed by North and South Hub project investments, the discoveries have enhanced the commercial appeal of E's Indonesian portfolio.
Searah Supports Long-Term Production Growth of E
The newly established Searah venture combines Eni's and Petronas' regional operations across Indonesia and Malaysia.
Searah’s portfolio includes 19 producing and development assets, with current production capacity of around 350 thousand barrels of oil equivalent per day (Mboe/d). The venture targets production capacity to exceed 500 Mboe/d by 2028, strengthening Eni's exposure to regional gas demand.
What Does This Mean for Eni Investors?
The proposed stake sales align with Eni's strategy of optimizing its upstream portfolio by unlocking value from established assets. The transactions are expected to enhance financial flexibility, allowing the company to allocate capital more efficiently and pursue growth opportunities across its operations.
Although financial details remain undisclosed and regulatory approvals are pending, the agreements highlight strong industry interest in Eni's Indonesian assets. Upon completion, the divestments will strengthen the energy giant's efforts to monetize its resource base while maintaining exposure to long-term production growth.
E’s Zacks Rank & Other Key Picks
Eni currently sports a Zacks Rank #1 (Strong Buy).
Other top-ranked stocks in the energy sector include Shell plc (SHEL - Free Report) , Chevron Corporation (CVX - Free Report) and BP plc (BP - Free Report) . SHEL, CVX and BP currently sport a Zacks Rank #1 each. You can see the complete list of Zacks Rank #1 stocks here.
Shell has a diversified portfolio spanning oil and gas exploration, production, refining, chemicals and LNG operations. The London-based integrated energy giant is benefiting from strong upstream performance, improved refining margins and contributions from its global LNG business. In the second quarter of 2026, SHEL's adjusted earnings increased to approximately $9.8 billion from $6.9 billion in the preceding quarter. Shell's refineries achieved a record utilization rate of 102%, while its LNG Canada project reached full capacity, strengthening Shell's operational performance.
Chevron, headquartered in Houston, TX, has substantial upstream and downstream operations in major global markets. The leading integrated energy company continues to benefit from higher production volumes, improved operating efficiency and ongoing cost-reduction initiatives. In the second quarter of 2026, CVX reported earnings of $12.1 billion, while worldwide production increased 20% year over year. Chevron achieved record U.S. production of nearly 2.1 million barrels of oil equivalent per day and completed its $3 billion annual structural cost-reduction target six months ahead of schedule, supporting its profitability and cash generation prospects.
BP, headquartered in London, operates an integrated energy business covering oil and gas production, refining, marketing and renewable energy activities. The British energy major is focusing on portfolio optimization and asset monetization to improve financial flexibility and streamline its operations. As highlighted in the second-quarter 2026 earnings results, BP completed the divestment of its Gelsenkirchen refinery in Germany and initiated sale processes for the North Sea business and Archaea Energy. These initiatives align with BP's strategy to sharpen its portfolio focus, strengthen balance sheet and direct capital toward higher-return opportunities.