The Italian energy giant Eni has officially made the final investment\ndecision (FID) for the development of a deep-sea gas project off the\ncoast of East Kalimantan. The project encompasses Gendalo\u2013Gandang (South\nHub) and Geng North\u2013Gehem (North Hub).<\/p>\n
This decision was taken just 18 months after the approval of the Plan\nof Development (POD) in 2024, marking a significant acceleration in the\ndevelopment of Indonesia\u2019s deep-sea oil and gas projects.<\/p>\n
In its development, Eni will utilise deep-sea production technology\nand existing infrastructure, including the Jangkrik Floating Production\nUnit (FPU) and optimisation of Train F at the Bontang LNG Plant. This\napproach is expected to reduce costs while accelerating gas\ncommercialisation.<\/p>\n
For the South Hub project, the development of Gendalo and Gandang\nwill take place at depths of 1,000 to 1,800 metres, involving the\ndrilling of seven production wells connected to the Jangkrik\nfacilities.<\/p>\n
Meanwhile, the North Hub involves drilling 16 production wells at\ndepths of 1,700 to 2,000 metres, which will be linked to a new floating\nproduction storage and offloading (FPSO) facility with a processing\ncapacity of more than 1 billion cubic feet of gas per day and 90,000\nbarrels of condensate per day.<\/p>\n
Overall, the two projects hold resource potential of around 10\ntrillion cubic feet (TCF) of gas and 550 million barrels of condensate.\nProduction is targeted to begin in 2028 and reach its peak in 2029 with\na capacity of around 2 billion cubic feet of gas per day.<\/p>\n
The Head of SKK Migas, Djoko Siswanto, welcomed the investment\ndecision positively. He assessed that this FID serves as a strong signal\nof global investor confidence in Indonesia\u2019s upstream oil and gas\ninvestment climate.<\/p>\n
\u201cThis decision is an important step to increase national gas\nproduction and strengthen Indonesia\u2019s energy resilience,\u201d he stated.<\/p>\n
The project investment is estimated to exceed US$15 billion and has\nthe potential to create multiplier effects, including the absorption of\nthousands of workers.<\/p>\n
Additionally, the project will form part of a business cooperation\nplan between Eni and Petronas to establish a new company (NewCo),\ntargeted to achieve production of more than 500,000 barrels of oil\nequivalent per day in 2029.<\/p>\n
For information, Eni has been operating in Indonesia since 2001 and\nis one of the major gas producers in the Kutai Basin and Makassar Strait\nareas, which are now developing as a strategic national gas production\nhub.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/eni-finalises-investment-in-east-kalimantans-deep-sea-gas-project-production-targeted-to-begin-in-2028-1773859841", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }