Medco agrees Indonesian gas stake deal as Pertamina adds upstream interests
The transactions cover several East Kalimantan blocks, including four Kutai Basin contracts in MedcoEnergi’s agreement.
PT Medco Energi Internasional Tbk has agreed to buy a 10 per cent non-operating interest from Eni in four production-sharing contracts in Indonesia’s Kutai Basin. Separately, PT Pertamina Hulu Energi (PHE) has acquired Eni’s 10 per cent participating interest in the North Ganal and Rapak working areas.
MedcoEnergi’s agreement covers Muara Bakau, Ganal, West Ganal and East Ganal in East Kalimantan, including the Geliga gas discovery. Under an October 2026 sale and purchase agreement, PHE also increased its interest in East Sepinggan to 25 per cent from 15 per cent.
PHE president director Sunaryanto said the acquisitions were intended to help sustain national oil and gas production and strengthen the company’s upstream portfolio. In a statement cited on 13 October 2026, he said PHE was seeking assets with substantial resource potential that could generate value for the company and the country.
Oil and gas practitioner Hadi Ismoyo, a former secretary-general of the Indonesian Petroleum Engineers Association (IATMI), viewed the transactions as a way for developers and partners to share deepwater investment risks. He said they were not directly linked to weakness in Indonesia’s oil and gas investment climate.
Hadi put Eni’s deepwater development investment for Gehem, Geng North, Gendalo and Gandang in the Mahakam Basin at about US$15 billion. Speaking to CNBC Indonesia in comments cited on 14 October 2026, he said the scale of that investment made cooperation between companies necessary.
