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

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.

About Neptune Energy

Neptune Energy is an independent global E&P company with operations across the North Sea, North Africa and Asia Pacific. The business had production of 162,000 net barrels of oil equivalent per day in 2018 and 2P reserves at 31st December 2018 of 638 million barrels of oil equivalent. The Company, founded by Sam Laidlaw, is backed by CIC and funds advised by Carlyle Group and CVC Capital Partners.

About ENI

Eni is an integrated energy company employing more than 34.000 people in 69 countries in the world. Eni engages in oil and natural gas exploration, field development and production, as well as in the supply, trading and shipping of natural gas, LNG, electricity and fuels. Through refineries and chemical plants, Eni processes crude oil and other oil-based feedstock to produce fuels, lubricants and chemical products that are supplied to wholesalers or through retail networks or distributors.