Eni Expands with New Offshore Fields Project in Indonesia

Eni has announced that Indonesian authorities have approved the Plans of Development (POD) for its Geng North and Gehem fields within the North Ganal and Rapak PSCs. This integrated approach will establish a new production hub, known as the Northern Hub, in the Kutei Basin. Additionally, approvals have been granted for the Gendalo & Gandang fields under the Ganal PSC. Eni has also secured a 20-year extension for the IDD licenses for the Ganal and Rapak blocks.

With these approvals, Eni is poised to achieve substantial production figures, estimating output of approximately 2 billion cubic feet per day (bcf/d) of gas and 80,000 barrels of oil per day (bopd) of condensates in the East Kalimantan region. This production will cater to both domestic and international markets, leveraging synergies with existing infrastructure, such as the Bontang LNG Plant and the Jangkrik Floating Production Unit (FPU).

The Northern Hub’s POD includes developing 5 trillion cubic feet (TCF) of gas and 400 million barrels of condensates from the Geng North discovery (announced in October 2023), along with 1.6 TCF from the Gehem discovery. This will involve subsea wells, flowlines, and a new FPSO with a capacity to handle 1 BCFD of gas and 80,000 barrels of condensates per day, with storage for 1 million barrels. The gas will be processed on the FPSO, piped to the Santan Terminal and East Kalimantan pipeline network, with part liquefied at Bontang LNG and part piped for domestic use. Condensates will be stabilized and stored on the FPSO, then transported by shuttle tankers.

The Gendalo & Gandang POD involves developing 2 TCF of gas reserves via subsea wells connected to the Jangkrik FPU, extending its production plateau, which is nearing 750 million cubic feet per day (mmscf/d), by at least 15 years.

These developments, alongside the East Merakes and Maha fields, highlight the strategic partnership between Eni and SKK Migas, enhancing local content and optimizing capacity at the Bontang LNG plant while ensuring domestic gas supply. Eni has announced plans for an extensive drilling campaign in the Kutei Basin over the next 4-5 years. This initiative aims to explore the significant gas potential of the basin, estimated to exceed 30 TCF, following the successful discovery of the Geng North field.

Eni's CEO, Claudio Descalzi, emphasized that the approval of the Northern Hub and Gendalo & Gandang Plans of Development by Indonesian authorities is a significant step towards the final investment decision (FID) for these gas projects, aligning with Eni's goals for decarbonization and energy security. He highlighted that establishing the Northern Hub in the Kutei Basin is a transformative development for Eni in Indonesia. This achievement is attributed to Eni's strategic approach, which integrates its expertise in exploration with the recent acquisition of IDD and Neptune assets, positioning the company as a leader in a premier basin. Descalzi also acknowledged the crucial role of the strategic partnership with Indonesian authorities in achieving these milestones shortly after the Geng North discovery and the acquisition completions.

Eni holds an 83.3% participating interest and operates the North Ganal Block – Geng North field, with Agra Energi Pte Ltd owning the remaining 16.7%. Additionally, Eni holds an 82% participating interest and operates the Ganal and Rapak Blocks, with Tip Top holding the remaining 18%. Since 2001, Eni has maintained a significant presence in Indonesia, managing a diverse portfolio of assets across exploration, development, and production phases, and currently achieving an equity production of approximately 95,000 barrels of oil equivalent per day (boe/d) in East Kalimantan.