Eni gets green light for Indonesian gas developments

SAN DONATO MILANESE, August 26, 2024 – Indonesian authorities have approved Eni’s plan of development (PoD) for the Geng North and Gehem gasfields in the Kutei Basin, the Italian major announced on Friday.

The Geng North and Gehem fields are estimated to hold reserves of 141.6 bcm (5 tcf) of gas and 400 million barrels of condensates, and 45.3 bcm (1.6 tcf) of gas, respectively. They will be integrated under the Northern Hub project and developed via subsea wells, flowlines and a new FPSO with a handling capacity of about 28.3 mcm (1 bcf) per day of gas and 80,000 boepd of condensates.

Gas will be treated onboard the FPSO and piped to the onshore receiving facilities at Santan Terminal and the East Kalimantan pipeline network. Part will be liquefied at the Bontang LNG facility and part will be piped to the domestic market.

Eni also announced the approval of the Gendalo-Gandang PoD, which calls for the development of the cumulative gas reserves of 56.6 bcm (2 tcf) in the Ganal PSC via subsea wells tied back to the Jangkrik FPU, extending its production plateau of 21.2 mcm (750 mcf) per day by at least 15 years.

“The approval of the Northern Hub and Gendalo-Gandang PoDs by the Indonesian Authorities marks a crucial milestone towards the FID of both gas projects. The establishment of a new production hub in the Kutei Basin represents a game changer for Eni in Indonesia. This grants us today a strong leadership in a world-class basin, close to existing facilities and to very important markets, said Claudio Descalzi, CEO of Eni.

Eni also announced plans to conduct a drilling campaign in the next 4-5 years to assess the near-field exploration potential in the blocks it operates in the Kutei Basin.

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