Core Viewpoint - Eni SpA has received approval from Indonesian authorities to develop two offshore fields, establishing a new gas and condensates production hub in the Kutei Basin, which will significantly enhance its gas production capacity and expand its presence in the Asian market [1][7]. New Production Hub in the Kutei Basin - The integrated development involves the Geng North and Gehem fields, collectively forming the "Northern Hub," tapping into 5 trillion cubic feet (tcf) of gas and 400 million barrels of condensates from Geng North and 1.6 tcf of gas from Gehem [2]. - The project includes the installation of subsea wells, flowlines, and a floating production storage and offloading (FPSO) unit capable of handling 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 [3]. Gas and Condensates Management - Gas produced will be processed on the FPSO and transported to onshore facilities at the Santan terminal, integrated into the East Kalimantan pipeline network, and partially liquefied at the Bontang LNG facility for export [4]. Expansion of Existing Operations - Indonesian authorities have also approved the development plan for the Gendalo & Gandang fields, estimated to hold 2 tcf of gas reserves, extending the production plateau by at least 15 years [5]. Strategic Milestone for Eni - Eni aims to establish a production capacity of approximately 2 bcf/d of gas and 80,000 barrels per day of condensates in East Kalimantan, catering to both domestic and international markets [6]. - The approval of the Northern Hub and Gendalo & Gandang development plans is seen as a critical step toward final investment decisions, aligning with Eni's goals of decarbonization and energy security [7]. Future Exploration Plans - Eni plans to conduct a drilling campaign over the next four to five years to explore near-field potential within its operated blocks in the Kutei Basin, estimated to contain more than 30 tcf of gas [8]. Collaborative Efforts and Outlook - Eni holds an 83.3% stake in the North Ganal Block and an 82% stake in the Ganal and Rapak blocks, collaborating closely with SKK Migas, Indonesia's oil and gas regulator, to achieve these milestones [9]. - These projects are expected to boost local content, increase utilization of the Bontang LNG plant's capacity, and secure gas supply for domestic consumption [9]. Contribution to Energy Security - Through these strategic initiatives, Eni is set to strengthen its role in the global energy market while contributing to Indonesia's energy security and economic development [10].
Eni (E) Secures New Offshore Gas Hub Approvals in Indonesia