(Alliance News) - Eni Spa announced Tuesday the acquisition of Chevron's interests-including the operatorship-in the Ganal PSC, Rapak PSC and Makassar Straits PSC blocks in the Kutei Basin, East Kalimantan, offshore Indonesia. Eni already owns a 20 percent stake as a nonoperator in the Ganal and Rapak blocks.

"The acquisition is an important step in particular because it will accelerate the development of the Gendalo and Gandang gas project, part of the Indonesia Deepwater Development in the Ganal PSC, near the Jangkrik FPU, with gas reserves estimated at about 2TCF," the Six-legged Dog said.

Added to this are the Bangka gas field in production, the Gehem and Ranggas discoveries, and the significant exploration potential also included in the northern part of the asset, thus representing an important, further consolidation of Eni's activities in the East Kalimantan area.

The acquisition of Chevron's assets in Indonesia will enable Eni to accelerate the development of the IDD project, leveraging its strong presence in the East Kalimantan area and synergies with the Jangkrik infrastructure operated by Eni, the Bontang LNG plant, and the domestic gas market. This will strengthen Eni's position in Indonesia, where the company has a strong track record of success in gas development.

This acquisition is also fully in line with the company's energy transition strategy, of which gas and LNG are key pillars, to increase the share of natural gas production to 60 percent by 2030, concurrent with global demand for affordable, low-carbon, accessible energy.

This transaction follows the recent announcement of the agreement for Eni's acquisition of Neptune Energy, which has-among other things-a significant presence in Indonesia and an excellent fit with Eni's operations in East Kalimantan.

Closing of the transaction is subject to government and regulatory approvals.

Eni's first exploration agreement in Indonesia was in 1968; the company returned to the country in 2001 with exploration and production activities. Current net production is about 80,000 boe per day.

Eni's stock is down 0.4 percent at EUR13.76 per share.

By Giuseppe Fabio Ciccomascolo, Alliance News senior reporter

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