Eni has received the approval of the Indonesian authorities for the Plan of Development (POD) of the Geng North (North Ganal PSC) and Gehem (Rapak PSC) fields, aimed to create a new production hub, called Northern Hub, in the Kutei Basin.
The Indonesian authorities have also approved the POD for Gendalo&Gandang fields (Ganal PSC).
Additionally, Eni has been awarded by the Indonesian authorities a 20-year extension of the IDD licenses named Ganal and Rapak.
Eni is therefore set to establish gas and condensates 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 the East Kalimantan region.
The production is anticipated for domestic and international markets, leveraging existing facilities in the area, such as the Bontang LNG Plant and the Jangkrik Floating Production Unit (FPU).
The Northern Hub POD envisages the development of the 5 trillion cubic feet (tcf) gas and 400 million barrels (mmbbls) of condensates of the Geng North discovery announced by Eni in October 2023.
The hub also foresees the development of the 1.6 tcf of the Gehem discovery via subsea wells, flowlines and a new built FPSO with a handling capacity of about 1 bcf/d of gas and 80,000 bbl/d of condensates and a storage capacity of 1 mmbbls.
Gas will be treated onboard the FPSO and then piped to the onshore receiving facilities at Santan Terminal and to the East Kalimantan pipeline network. It will be partly liquefied at the Bontang LNG facility and partly piped for domestic market. While the condensates production will be stabilized and stored onboard the FPSO, and then evacuated via shuttle tankers.
Besides the approved Gendalo&Gandang POD anticipates the development of the cumulative 2 tcf of gas reserves in the Ganal PSC via subsea wells tied back to the Jangkrik FPU.
Moreover, the development of Gendalo&Gendang will allow to extend Jangkrik’s gas production plateau, which nears 750 mmscf/d, by at least 15 years.
These new developments, along with the ongoing development of East Merakes and Maha fields, result from the close strategic partnership between Eni and SKK Migas, and will drive a major positive impact on local content while also increasing the utilization of the available capacity at Bontang LNG plant, in addition to ensuring gas for domestic consumption, Eni stated in a press release on Friday.
Eni is also planning to conduct a drilling campaign in the next 4-5 years to assess near-field exploration potential within the Eni-operated blocks in the Kutei Basin, amounting to over 30 tcf of gas and largely de-risked following the Geng North discovery.
“The approval of the Northern Hub and Gendalo&Gandang Plans of Development by the Indonesian Authorities marks a crucial milestone towards the FID of both gas projects, in line with our decarbonization and energy security strategy,” said CEO of Eni Claudio Descalzi.
“The establishment of a new production hub in the Kutei Basin represents a game changer for Eni in Indonesia. This is the result of a consistent strategy that combines our distinctive exploration skills with the acquisition of IDD and Neptune assets. This grants us today a strong leadership in a world-class basin, close to existing facilities and to very important markets,” descalzi continued.
“The strategic partnership with the Indonesian authorities has been pivotal to reaching these key milestones only a few months after the Geng North discovery and the completion of the IDD and Neptune acquisition processes,” he added.
Notably, Eni holds an 83,3% participating interest and operates the North Ganal Block – Geng North field, with Agra Energi Pte Ltd as partner holding the remaining 16.7%.
Eni also holds 82% Participating Interest and operates the Ganal and Rapak Blocks, with Tip Top as a partner holding the remaining 18%.
