Eni said on Thursday its Geliga-1 gas discovery offshore Indonesia delivered strong test results, confirming high reservoir productivity and supporting potential fast-track development.
The discovery is located in the Ganal PSC and is operated by Eni, with an 82 per cent interest. China's Sinopec holds the remaining 18 per cent.
The Ganal PSC is included in a portfolio of 19 blocks - 14 in Indonesia and five in Malaysia - that will be transferred to Searah, the company jointly controlled by Eni and Malaysia's Petronas.
Searah, which is expected to start working by the end of June once it has completed the authorisation process, will combine assets, technical know-how and financial capacity to support growth in Southeast Asia.
Its business plan includes the development of approximately three billion barrels of oil equivalent (boe) of discovered resources, alongside the unlocking of significant exploration potential.
The sale to an investor of a 10 per cent stake in the Eni Indonesia portfolio withheld from the Searah transaction is under way and expected to be concluded in 2026.
The Geliga discovery adds to the value of this sale, Eni said in a statement.
Based on the test results, the Geliga-1 well is estimated to produce a sustainable rate of approximately 200 million standard cubic feet per day of gas and about 10,000 barrels per day of condensate, Eni said in a statement.
"With energy security becoming an increasing priority in Southeast Asia, we view the stake (in Geliga-1) as a key strategic opportunity for Eni going forward," said Barclays in a report for clients.
A plan of development is expected to be submitted to the government of Indonesia in the coming weeks, Eni said.
(Reporting by Francesca Landini; Editing by Giulia Segreti and Joe Bavier)
