Neptune farms into Eni’s acreage offshore Indonesia

Neptune Energy has announced it has agreed to acquire interests from Eni in the Kutei basin Production Sharing Contracts (PSC), offshore Indonesia.

Neptune farms into Eni’s acreage offshore Indonesia
Photo: Eni

The agreement will see Neptune acquire a 20 per cent working interest in the East Sepinggan PSC and a 30 per cent working interest in the East Ganal PSC.

The East Sepinggan PSC offers the fast-tracked, low-cost Merakes development that is expected to be cash flow positive shortly after start-up. Merakes is being developed as a subsea tie-back to the Eni-operated Jangkrik facility in the Maura Bakau PSC, in which Neptune has a 33.3 per cent working interest. The development will provide a natural hedge to Jangkrik.

Additionally, the recent discovery of Merakes East, next to Merakes, offers additional contingent resources to be developed in the near term.

The East Ganal PSC provides longer-term exploration prospects in the prolific Kutei basin.

Jim House, Neptune CEO, said:

“This is a strategically important agreement for Neptune, strengthening our position in Indonesia and providing both near and long-term growth. We look forward to deepening our strong relationship with Eni as our partner of choice in the greater area”.

The transaction is subject to customary regulatory approvals, with completion expected in the fourth quarter of 2019.