MedcoEnergi Inks Deal to Acquire 10% Stake in Four Kutai Basin Gas Blocks From Eni

JAKARTA, Investortrust.id — Indonesian independent upstream champion PT Medco Energi Internasional Tbk (MEDC) has entered into an agreement with Italian energy major Eni S.p.A. to acquire a 10% non-operating participating interest across four high-impact production sharing contracts (PSCs) in East Kalimantan’s prolific Kutai Basin.

The transaction substantially broadens MedcoEnergi’s offshore natural gas footprint while cementing its long-term presence across Southeast Asia's liquefied natural gas (LNG) export value chain.

The transaction targets four interconnected production sharing blocks: Muara Bakau, Ganal, West Ganal, and East Ganal. Situated within the deepwater heart of the Kutai Basin, the acreage represents one of Indonesia's most productive offshore gas provinces.

The portfolio spans a balanced pipeline of operating fields, large-scale field developments, and prospective exploration prospects, including the recently announced world-scale Geliga gas discovery.

Stable Gas Production

As global demand for transition fuels accelerates and Indonesia works to secure domestic feedstocks for its Bontang liquefaction terminal, domestic upstream operators are moving aggressively to consolidate stakes in tier-one deepwater reservoirs. MedcoEnergi's acquisition provides immediate access to stable, cash-generative gas production while securing multi-year reserve replacement through high-impact development assets like Geliga, without taking on direct operator execution risks.

The four offshore blocks are currently operated by Searah, an operating joint venture established between Eni and Malaysian state energy enterprise Petroliam Nasional Berhad (Petronas). Under the agreed transaction framework, MedcoEnergi will hold a 10% non-operated working interest, while operational responsibilities remain with the designated joint-venture operator.

MedcoEnergi Chief Executive Officer Ronald Gunawan stated that the transaction serves as a natural strategic extension of the group’s domestic upstream footprint.

"This transaction complements our portfolio in Indonesia, expanding our presence in the established LNG supply chain backed by world-class infrastructure and operations," Ronald said in an official statement on Thursday, Oct. 15, 2026.

Ronald underscored that the blend of actively producing acreage and large-scale greenfield projects will solidify the company’s long-term production profile. The deal also opens extensive multi-horizon exploration avenues across the Kutai Basin, where recent exploration campaigns continue to demonstrate significant upside potential.

The acquisition provides balanced lifecycle exposure across different asset maturity phases. Producing assets provide immediate baseload cash flow and operational stability, while appraisal-stage discoveries and exploratory prospects offer long-term reserve upside.

Final completion of the transaction remains subject to customary closing conditions precedent, including formal regulatory approvals from the Government of Indonesia.