JAKARTA \u2013 Global energy company Eni has officially taken the Final\nInvestment Decision (FID) for the development of the Gendalo\u2013Gandang\n(South Hub) and Geng North\u2013Gehem (North Hub) deep-sea gas projects off\nthe coast of East Kalimantan. This decision marks a significant\nacceleration, just 18 months after the approval of the Plan of\nDevelopment (POD) in 2024.<\/p>\n
The project development relies on deep-sea production technology and\nthe utilisation of existing infrastructure, including the Jangkrik FPU\nfacilities and the reactivation of Train F at the Bontang LNG Plant.\nThis strategy is deemed capable of enhancing cost efficiency while\naccelerating gas commercialisation.<\/p>\n
For the South Hub project, the development of Gendalo and Gandang\nwill be carried out at depths of 1,000\u20131,800 metres with the drilling of\nseven production wells connected to the Jangkrik facilities. Meanwhile,\nthe North Hub involves drilling 16 production wells at depths of\n1,700\u20132,000 metres, which will be linked to a new FPSO facility with a\nprocessing capacity of more than 1 billion cubic feet of gas per day and\n90,000 barrels of condensate per day.<\/p>\n
Overall, the two projects have 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 and 90,000\nbarrels of condensate per day.<\/p>\n
The produced gas will be piped onshore to supply the domestic network\nand support LNG production at Bontang, for both domestic needs and\nexports. Meanwhile, the condensate will be processed and stored at the\nFPSO facilities before being shipped by tanker.<\/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 investors\u2019 confidence in Indonesia\u2019s upstream oil and gas\ninvestment climate.<\/p>\n
\u201cThis investment decision is an important step in supporting the\nincrease in national gas production while strengthening Indonesia\u2019s\nenergy resilience,\u201d he stated in a press release on Wednesday\n(18\/3\/2026).<\/p>\n
Djoko added that the investment worth more than US$15 billion will\nalso provide multiplier effects, including the absorption of thousands\nof workers. Currently, Eni is also conducting tender processes for goods\nand services procurement as well as Long Lead Item (LLI)\nprocurement.<\/p>\n
Furthermore, this project will be part of a strategic partnership\nbetween Eni and Petronas to form a new company (NewCo) with a target\nproduction of more than 500,000 barrels of oil equivalent per day in\n2029.<\/p>\n
For information, Eni has been operating in Indonesia since 2001 and\nis one of the main gas producers in the Kutai Basin and Makassar Strait,\nwhich is now developing as a strategic national gas production hub.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/eni-officially-takes-investment-decision-for-deep-sea-gas-project-in-east-kalimantan-value-reaches-us-15-1773859840", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }