ENI Partner Agra Energi Exploring Selling Stake in North Ganal Gas Block in Indonesia

(Bloomberg) -- The Indonesian partner of Eni SpA is exploring a sale of its minority stake in a gas block in Sumatra for as much as $500 million, people with knowledge of the matter said.

PT Agra Energi Indonesia is working with an adviser on a possible sale of its 16.7% stake in the North Ganal Block, the people said, asking not to be identified because the process is private. They have reached out to potential investors, including energy companies and private equity firms, the people said. A transaction could value Agra’s stake at $300 million to $500 million, they said.

Deliberations are ongoing and Agra may decide not to sell, the people said. 

A representative for Agra didn’t respond to a request for comment.

Eni has been operating in Indonesia since 2001 and announced a significant gas discovery in North Ganal last year. The Italian energy firm holds the remaining 83.3% stake in the block. 

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