Italian company Eni has agreed to acquire stakes in the Ganal production-sharing contract (PSC), Rapak PSC and Makassar Straits PSC in the Kutei Basin, offshore East Kalimantan, Indonesia, from US-based Chevron.

Currently, Chevron owns a 62% stake in the Ganal PSC and Rapak PSC, and 72% in the Makassar Straits PSC. Eni owns a 20% stake in the Ganal and Rapak Blocks.

Eni said the acquisition marks an important step, "particularly for the opportunity" to advance the Gendalo and Gandang gas project development.

Financial details of the deal were undisclosed.

With estimated natural gas reserves of approximately two trillion cubic feet, the Gendalo and Gandang project forms part of the Indonesia Deepwater Development (IDD) in the Ganal PSC, close to the Jangkrik floating production unit.

In a press statement, Eni said: “This is in addition to the producing Bangka gas field, the Gehem and Ranggas discoveries and the significant exploration potential also included in the northern part of the asset, which therefore represent a further relevant consolidation for Eni operations in the East Kalimantan area.”

Eni noted that the acquisition will allow it to accelerate the development of the IDD project and complies with its energy transition strategy, which features gas and liquefied natural gas as key elements.

The transaction is subject to the customary governmental and regulatory approvals.

Eni aims to increase the natural gas production share to 60% by 2030. In Indonesia, Eni’s current net production stands at approximately 80 thousand barrels of oil equivalent per day.