Indonesian oil and gas firm MedcoEnergi has agreed to acquire significant stakes in two South Sumatra gas blocks from Spanish energy company Repsol in a deal worth around US$90 million, the company announced on Tuesday, September 16, 2025.
Under the agreement, Medco will take over a 45 percent participating interest in the Sakakemang block and an 80 percent stake in the adjacent South Sakakemang block, assuming operatorship of both projects pending approval from the Indonesian government.
Repsol first declared in 2019 that Sakakemang contained an estimated 2 trillion cubic feet of recoverable gas. Its development plan has since been approved by authorities, while exploration activities in South Sakakemang remain at an early stage.
“This acquisition strengthens our strategic position in South Sumatra and our role in the integrated gas value chain in Java,” MedcoEnergi president director Roberto Lorato said as quoted in a statement.
Sakakemang lies close to the Corridor gas block, where Medco assumed operatorship from Repsol earlier this year.
A Repsol spokesperson said the divestment aligned with the company’s global asset rotation strategy to focus on core geographic areas where it has competitive advantages. Repsol will maintain its presence in Indonesia through its lubricants business.
In a related move, Medco also increased its stake in pipeline operator PT Transportasi Gas Indonesia (TGI) to 40 percent. TGI transports natural gas from the Corridor block to Riau, Batam, and Singapore.
The acquisition marks Medco’s latest step in consolidating its presence in Indonesia’s gas sector as the government seeks to boost domestic energy security while maintaining export commitments to regional markets.
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