Italian energy company Eni has officially made the Final Investment\nDecision (FID) for the development of two major offshore gas projects in\nEast Kalimantan, namely Gendalo-Gandang (South Hub) and Geng North-Gehem\n(North Hub).<\/p>\n
This decision comes approximately 18 months after the approval of the\nPlan of Development (POD) in 2024, indicating significant acceleration\nin the development of Indonesia\u2019s deep-sea gas projects.<\/p>\n
The development of these projects will utilise deep-sea production\ntechnology and existing infrastructure, including the Jangkrik FPU\nfacility and the reactivation of Train F at the Bontang LNG Plant. This\nstrategy is expected to reduce costs while accelerating the\ncommercialisation of the gas.<\/p>\n
For the South Hub, the development of Gendalo and Gandang will take\nplace at depths of 1,000 to 1,800 metres, with seven production wells\nconnected to the Jangkrik facility.<\/p>\n
Meanwhile, the North Hub involves drilling 16 production wells at\ndepths of 1,700 to 2,000 metres. This project will be connected to a new\nFPSO with a processing capacity of more than 1 billion cubic feet of gas\nper day and 90,000 barrels of condensate per day.<\/p>\n
In total, both projects are estimated to have resource potential of\nup to 10 trillion cubic feet of gas (TCF) and 550 million barrels of\ncondensate.<\/p>\n
Gas production is targeted to begin in 2028, peaking in 2029, with a\ncapacity 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 meet domestic needs and\nsupport LNG production at Bontang, for both the domestic market and\nexports. Meanwhile, the condensate will be processed and stored at the\nFPSO facility before being shipped by tanker.<\/p>\n
This investment decision marks a key milestone in the development of\nIndonesia\u2019s deep-sea gas resources and strengthens cooperation between\nEni and the Indonesian government. Production of gas and LNG from these\nprojects is expected to make a significant contribution to the nation\u2019s\nlong-term energy security.<\/p>\n
The Head of SKK Migas, Djoko Siswanto, has welcomed the move\npositively. He views this FID as reflecting increasing confidence from\nglobal investors in Indonesia\u2019s upstream oil and gas sector.<\/p>\n
According to Djoko, this investment will not only increase national\ngas production but also have broad economic impacts, including the\ncreation of a large number of jobs.<\/p>\n
With an investment value exceeding US$15 billion, the project is now\nentering the stage of procuring goods and services as well as purchasing\nmajor components (long lead items).<\/p>\n
Additionally, the project is planned to be part of the asset merger\nin a collaboration between Eni and Malaysian energy company Petronas to\nform a new entity (NewCo) targeting production of more than 500,000\nbarrels of oil equivalent per day in 2029.<\/p>\n
Eni itself has been operating in Indonesia since 2001 and is one of\nthe major gas producers in the Kutai Basin and Makassar Strait, which is\nnow developing as a strategic national gas production area.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/italian-oil-company-invests-us-15-billion-in-major-gas-project-in-east-kalimantan-1773859840", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }