Jakarta. Medco Energi Internasional (MEDC) has agreed to acquire a 10% non-operating stake in four oil and gas production-sharing contracts (PSCs) operated by Italian energy company Eni in East Kalimantan.

Medco Energi has signed an agreement with Eni to acquire participating interests in the Muara Bakau, Ganal, West Ganal and East Ganal PSCs, which cover producing assets, gas development projects and exploration areas.

The four blocks are located in a productive gas basin that includes the recently announced Geliga gas discovery, a large-scale find that offers further exploration potential.

The PSCs are currently operated by Searah, a newly established joint venture between Eni and Malaysia’s Petronas. Medco Energi will join the projects as a non-operating partner, leaving operatorship unchanged.

Medco Energi CEO Ronald Gunawan said the transaction would complement the company’s Indonesian portfolio and strengthen its presence in the LNG supply chain.

“This transaction complements our portfolio in Indonesia and expands our presence in the LNG supply chain, supported by world-class infrastructure and operations,” Ronald said in a written statement on Monday.

He said the acquisition could also strengthen Medco Energi’s long-term production base through a combination of producing assets and large-scale gas development projects, while providing exposure to further exploration opportunities in the Kutai Basin.

Ronald added that the potential was supported by recent exploration successes and several promising prospects for future development.

The transaction remains subject to the fulfillment of applicable requirements, including approval from the Indonesian government.

MEDC shares rose 1.05% to Rp 1,445 as of 3:07 p.m. Jakarta time on Monday, giving the company a market capitalization of Rp 36.32 trillion.

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