Pertamina, Eni ink $4.4-billion LNG deal

JAKARTA, July 1, 2015 – Indonesian state oil and gas company Pertamina has signed a deal with Eni for new supplies of LNG.

The $4.4-billion agreement will see the Italian super-major supply 1.4 million tonnes per year of LNG to Pertamina from 2017-2024.

Production will come from the Jangkrik Field Development Project, run by Eni through its local subsidiary, Eni Muara Bakau.

The government of Indonesia is trying to shift the country’s energy base from oil to natural gas. The Southeast Asian nation holds 2.9 tcm (102 tcf) of gas reserves, and is a major exporter of LNG.

Indonesia’s oil production has declined in recent years as fields mature and discoveries fall far from the consumer base in Jakarta.

Pertamina CEO Dwi Soetjipto said the LNG would be delivered via pipeline to the mining industry in East Kalimantan. If industry buyers fail to absorb the supply, the company will direct it towards exports.

Eni holds a 55-percent operating stake in the Muara Bakau concession, which it develops with partners Genie of France (formerly GDF Suez) and local company Saka Energi.

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