Eni Agrees FID for Deep-Sea Gas Project in East Kalimantan

Balikpapan, East Kalimantan (ANTARA) - Italian-based global energy company Eni has taken a strategic step with the final investment decision (FID) for the deep-sea gas development project off the coast of East Kalimantan (Kaltim). This massive project, valued at $15 billion, includes the development of Gendalo-Gandang (South Hub) and Geng North-Gehem (North Hub). “Eni has taken the final investment decision (FID) for the deep-sea gas development off the coast of Kaltim,” said the Head of the Special Task Force for the Implementation of Upstream Oil and Gas Business Activities (SKK Migas) Djoko Siswanto, in his statement quoted in Balikpapan, East Kalimantan, on Friday. According to Djoko, Eni’s investment decision is a strong signal of global investor confidence in Indonesia’s upstream oil and gas sector, which will not only boost national gas production but also strengthen long-term energy resilience. Eni’s decision, he continued, is an important step in supporting the increase in national gas production and strengthening Indonesia’s energy resilience. “The FID decision was made relatively quickly, only about 18 months after the approval of the plan of development (POD) in 2024, reflecting the acceleration of deep-sea oil and gas project development in Indonesia,” Djoko added. The project will utilise deep-sea production technology and existing infrastructure, including the use of the Jangkrik Floating Production Unit (FPU) and the reactivation of Train F at the Bontang LNG Plant, which will reduce costs and accelerate gas commercialisation. “For the South Hub, it is carried out at sea depths between 1,000 and 1,800 metres with the drilling of seven production wells connected to the Jangkrik facility,” he explained. Meanwhile, the North Hub involves drilling 16 wells at depths of up to 2,000 metres, connected to a new floating production storage and offloading (FPSO) facility. Djoko continued that the floating production facility has a processing capacity of more than one billion cubic feet of gas per day or 1,000 MMSCFD, as well as 90,000 barrels of condensate per day. The project is estimated to have resource potential of up to 10 trillion cubic feet of gas (TCF) and 550 million barrels of condensate. Production from both projects is targeted to start operating in 2028 and reach its peak in 2029, with a capacity of around two billion cubic feet of gas per day. The produced gas will be piped to shore to meet domestic needs and support Bontang LNG production for both domestic and export markets. Eni’s investment will have broad economic impacts, expected to absorb thousands of workers. The project will also be part of a business cooperation plan between Eni and Malaysia’s Petronas, which plans to form a new entity with a combined production target of more than 500,000 barrels of oil equivalent per day in 2029. “The government, together with SKK Migas, will continue to encourage the acceleration of strategic projects to provide maximum benefits for the economy and society,” Djoko stated.