Eni SpA, an Italian energy giant, has received the green light from Indonesian authorities to develop two offshore fields, paving the way for a new gas and condensates production hub in the Kutei Basin off the coast of Indonesia. This significant development will boost Eni’s gas production capabilities and underscores its commitment to expanding its presence in the Asian market.
Eni’s new venture involves the integrated development of the Geng North (North Ganal PSC) and Gehem (Rapak PSC) fields. These fields will form the “Northern Hub,” a new offshore production center in the Kutei Basin. The project leverages the 5 trillion cubic feet (tcf) of gas and 400 million barrels of condensates discovered at Geng North in October 2023, along with 1.6 tcf of gas from the nearby Gehem field.
The development plan encompasses the installation of subsea wells, flowlines, and a newly constructed floating production storage and offloading (FPSO) unit. This FPSO is designed to handle approximately 1 billion cubic feet per day (bcf/d) of gas and 80,000 barrels of condensates per day, with a storage capacity of 1 million barrels.
The gas produced from these fields will be processed on the FPSO before being transported to onshore receiving facilities at the Santan terminal, integrating into the East Kalimantan pipeline network. The gas will then be partially liquefied at the Bontang LNG facility for export and domestic consumption. Meanwhile, condensates production will be stabilized and stored onboard the FPSO before being offloaded via shuttle tankers.
Beyond the Northern Hub, Indonesian authorities have also approved the development plan for the Gendalo & Gandang fields (Ganal PSC), which hold an estimated 2 tcf of gas reserves. Gas from these fields will be developed using subsea wells connected to the floating production unit (FPU) Jangkrik, extending its production plateau by at least 15 years.
Following a recent 20-year extension of its IDD licenses for the Ganal and Rapak blocks, Eni aims to establish a production capacity of approximately 2 bcf/d of gas and 80,000 barrels per day of condensates in the East Kalimantan region. This expansion will serve both domestic and international markets while leveraging synergies with existing facilities such as the Bontang LNG plant and FPU Jangkrik.
Claudio Descalzi, CEO of Eni, highlighted the strategic importance of these projects, emphasizing that the approval of the Northern Hub and Gendalo & Gandang development plans by Indonesian authorities is a pivotal step toward the final investment decision for both gas projects. This aligns with Eni’s goals of decarbonization and energy security. Descalzi noted that this development is a significant breakthrough for Eni in Indonesia, solidifying the company’s position in the Kutei Basin, a prime location close to its key markets and existing infrastructure.
In addition to these current developments, Eni plans to conduct a drilling campaign over the next four to five years to explore the near-field potential within its operated blocks in the Kutei Basin. These blocks are estimated to contain more than 30 tcf of gas, considered largely de-risked following the recent Geng North discovery.
Eni holds an 83.3% stake in the North Ganal Block (Geng North field), with Agra Energi holding the remaining 16.7%. For the Ganal and Rapak blocks, Eni owns an 82% stake, with Tip Top holding 18%. Eni’s close collaboration with SKK Migas, Indonesia’s oil and gas regulator, has been instrumental in achieving these milestones.
These projects are expected to boost local content, increase the utilization of the Bontang LNG plant’s capacity, and secure gas supply for domestic consumption. With these strategic initiatives, Eni is poised to strengthen its role in the global energy market while contributing to Indonesia’s energy security and economic development.
