Italy’s Eni has received a green light from Indonesian authorities on its Plan of Development (POD) of the Geng North (North Ganal PSC) and Gehem (Rapak PSC) fields. The integrated development of the two fields will create a new production hub, called Northern Hub, in the Kutei Basin. The Indonesian authorities have also approved the development plans for the Gendalo and Gandang fields (Ganal PSC). Additionally, Indonesian authorities have awarded Eni a 20-year extension of the Ganal and Rapak licenses.
“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, in line with our decarbonization and energy security strategy,” said Claudio Descalzi, chief executive at Eni. “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. 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.”
The new projects will establish production of approximately 2 Bcf/D of gas and 80,000 B/D of condensates in the East Kalimantan region, both for domestic and international market, leveraging synergies with existing facilities in the area, such as the Bontang LNG Plant and the Jangkrik floating production unit (FPU).
The Northern Hub POD includes development of the 5.0 Tcf gas and 400 million bbl of condensates of the Geng North discovery announced by Eni in October 2023, along with the 1.6 Tcf of the nearby Gehem discovery through subsea wells, flowlines, and a newbuild FPSO with a handling capacity of about 1.0 Bcf/D gas and 80,000 bbl of condensates per day and a storage capacity of 1.0 million bbl.
Gas will be treated on board 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 the domestic market. The condensates production will be stabilized and stored on board the FPSO, and then exported via shuttle tankers.
The approved Gendalo and Gandang POD includes the development of the cumulative 2.0 Tcf gas reserves in the Ganal PSC via subsea wells tied back to the Jangkrik FPU. The development of Gendalo and Gendang will allow extension of Jangkrik’s gas production plateau, which nears 750 MMcf/D, by at least 15 years.
Eni is also planning to conduct a drilling campaign in the next 5 years to assess the near-field exploration potential within its operated blocks in the Kutei Basin, amounting to over 30 Tcf of gas, largely de-risked following the Geng North discovery.
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%.
