Eni has secured approval from Indonesian authorities for the Plan of Development (POD) for the Geng North (North Ganal PSC) and Gehem (Rapak PSC) fields, paving the way for the creation of a new production hub, known as the Northern Hub, in the Kutei Basin. The authorities also approved the POD for the Gendalo and Gandang fields (Ganal PSC).
Additionally, Eni has been granted a 20-year extension of the IDD licenses for the Ganal and Rapak fields by the Indonesian government. With this, Eni is set to establish gas and condensate production of approximately 2 billion cubic feet per day (bcf/d) of gas and 80,000 barrels per day (bbl/d) of oil condensates in East Kalimantan.
The production from these fields is intended for both domestic and international markets, utilizing existing infrastructure in the area, such as the Bontang LNG Plant and the Jangkrik Floating Production Unit (FPU).
The Northern Hub POD includes the development of the 5 trillion cubic feet (tcf) of gas and 400 million barrels (mmbbls) of condensates discovered at Geng North by Eni in October 2023. The hub will also develop 1.6 tcf of gas from the Gehem discovery through subsea wells, flowlines, and a newly constructed FPSO with a handling capacity of about 1 bcf/d of gas and 80,000 bbl/d of condensates, with a storage capacity of 1 mmbbls.
Gas processed on the FPSO will be piped to onshore facilities at Santan Terminal and integrated into the East Kalimantan pipeline network. It will be partially liquefied at the Bontang LNG facility and partially supplied to the domestic market. Condensates will be stabilized and stored on the FPSO before being transported by shuttle tankers.
Furthermore, the approved Gendalo and Gandang POD plans to develop 2 tcf of gas reserves in the Ganal PSC via subsea wells connected to the Jangkrik FPU. This development will extend the gas production plateau of Jangkrik, which is nearing 750 million standard cubic feet per day (mmscf/d), by at least 15 years.
These new developments, along with the ongoing development of the East Merakes and Maha fields, are the result of a close strategic partnership between Eni and SKK Migas. They are expected to significantly boost local content, increase the utilization of available capacity at the Bontang LNG plant, and ensure a steady supply of gas for domestic consumption, according to an Eni press release on Friday.
Eni also plans to launch a drilling campaign over the next 4-5 years to explore near-field opportunities within the Eni-operated blocks in the Kutei Basin, which hold an estimated 30 tcf of gas, largely de-risked following the Geng North discovery.
“The approval of the Northern Hub and Gendalo and Gandang Plans of Development by the Indonesian authorities marks a crucial milestone towards the FID of both gas projects, aligning with our decarbonization and energy security strategy,” said Eni CEO Claudio Descalzi.
“The establishment of a new production hub in the Kutei Basin represents a game changer for Eni in Indonesia. This achievement is the result of a consistent strategy that combines our distinctive exploration skills with the acquisition of IDD and Neptune assets. This positions us as a strong leader in a world-class basin, close to existing facilities and key markets,” Descalzi added.
He emphasized that the strategic partnership with Indonesian authorities has been pivotal in achieving these milestones just months after the Geng North discovery and the completion of the IDD and Neptune acquisition processes.
Eni holds an 83.3% participating interest and operates the North Ganal Block – Geng North field, with Agra Energi Pte Ltd as a partner holding the remaining 16.7%. Eni also holds an 82% participating interest in and operates the Ganal and Rapak Blocks, with Tip Top as a partner holding the remaining 18%.
