(WO) — Eni has received approval from Indonesian authorities for the development of two major gas fields, Geng North and Gehem, in the Kutei basin. The approval includes a 20-year extension for the Ganal and Rapak licenses.
The Northern Hub project will integrate the Geng North and Gehem fields, which together hold substantial gas and condensate reserves. The Geng North discovery, announced in October 2023, contains 5 trillion cubic feet (Tcf) of gas and 400 million barrels of condensates. The Gehem discovery has 1.6 Tcf of gas. Production will include about 2 billion cubic feet per day (bcf/d) of gas and 80,000 barrels per day of condensates, utilizing existing infrastructure like the Bontang LNG Plant and Jangkrik Floating Production Unit (FPU).
The Gendalo&Gandang Plan of Development will enhance the Ganal PSC with 2 Tcf of gas. This development will extend the Jangkrik FPU’s production plateau by at least 15 years.
These projects are expected to boost local content and optimize the use of the Bontang LNG plant’s capacity. Eni also plans a drilling campaign over the next 4-5 years to explore further potential in the Kutei Basin, estimated at over 30 Tcf of gas.
“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,” Eni’s CEO Claudio Descalzi said. “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.”
Eni operates the North Ganal Block and holds a majority interest in the Ganal and Rapak Blocks. The company has been active in Indonesia since 2001 and currently produces around 95,000 barrels of oil equivalent per day (boe/d) in East Kalimantan.
This article was originally posted at www.worldoil.com
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