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# Medco agrees to buy 10% non-operating stake in four Eni gas blocks
- URL: https://www.southeastasiaconnect.com/medco-eni-kutei-basin-gas-psc-stake-agreement/
- Published: 2026-10-12T07:58:58.000Z
- Updated: 2026-10-12T09:38:52.000Z
- Description: The conditional deal would extend Medco’s minority exposure to producing assets, gas developments and the Geliga discovery in East Kalimantan. Searah currently operates the contracts.
- Author: Southeast Asia Editorial Team
- Tags: News, #google-news, #sea-section-news, Indonesia, Energy

[MedcoEnergi](https://www.medcoenergi.com/uploads/pressreleases/551/Press%20Release%5FMedcoEnergi%20to%20Acquire%20Participating%20Interest%20in%20Kutei%20Basin%20PSCs%20from%20Eni%5FVF.pdf?ref=southeastasiaconnect.com) has reached an agreement with Eni to acquire a 10% non-operating participating interest in four East Kalimantan production-sharing contracts: Muara Bakau, Ganal, West Ganal and East Ganal. For investors, the proposed stake would extend Medco's Indonesian gas portfolio across current production and projects under development if the transaction closes.

## What sits inside the four-contract package

Eni's [12 October account of the sale](https://www.eni.com/en-IT/media/press-release/2026/10/eni-signs-two-agreements-for-the-sale-of-stakes-in-selected-upstream-assets-indonesia.html?ref=southeastasiaconnect.com) names the producing Jangkrik field, the Maha, Gendalo and Gandang gas projects being executed within South Hub, and the recently announced Geliga gas discovery. That identifies an operating field, specific development projects and an exploration discovery inside the proposed minority interest. Eni's separate sale to Pertamina covers North Hub contracts and is outside Medco's package.

Searah currently operates the four PSCs. It is the 50–50 venture of Eni and PETRONAS formed to manage selected assets in Indonesia and Malaysia. Medco's proposed stake is non-operating, so the company would join the ownership of the named contracts without the announcement transferring day-to-day operatorship to it.

## South Hub's planned link to existing infrastructure

In [March 2026](https://www.eni.com/en-IT/media/press-release/2026/03/eni-moves-forward-with-major-deep-water-gas-hubs-in-indonesia-with-dual-fids.html?ref=southeastasiaconnect.com), Eni took final investment decisions for Gendalo and Gandang as South Hub projects. Its development plan calls for seven producing wells and deep-water subsea systems tied back to the existing Jangkrik floating production unit. Eni also identified the Bontang liquefaction plant as infrastructure for its broader gas-hub development. The March project decision predates Medco's October agreement.

The planned tie-back explains why a minority interest in the South Hub projects matters alongside Jangkrik's present production: the development is designed around an existing offshore processing asset, rather than a wholly separate production chain. Medco chief executive Ronald Gunawan framed the deal as complementing the company's Indonesian portfolio and extending its position in an established LNG value chain.

The acquisition remains subject to customary conditions, including Indonesian regulatory approval. The agreement sets out a proposed stake; it does not establish that the interest has transferred.

**Sources:** [MedcoEnergi's 12 October release](https://www.medcoenergi.com/uploads/pressreleases/551/Press%20Release%5FMedcoEnergi%20to%20Acquire%20Participating%20Interest%20in%20Kutei%20Basin%20PSCs%20from%20Eni%5FVF.pdf?ref=southeastasiaconnect.com); [Eni's 12 October sale announcement](https://www.eni.com/en-IT/media/press-release/2026/10/eni-signs-two-agreements-for-the-sale-of-stakes-in-selected-upstream-assets-indonesia.html?ref=southeastasiaconnect.com); [Eni's 18 March South Hub decision](https://www.eni.com/en-IT/media/press-release/2026/03/eni-moves-forward-with-major-deep-water-gas-hubs-in-indonesia-with-dual-fids.html?ref=southeastasiaconnect.com).