Eni Injects Rp200 Trillion Investment, Giant Kaltim Gas Project Set for Production in 2028
Global investor confidence in Indonesia’s upstream oil and gas sector has been further strengthened. Italian energy company Eni has officially made the Final Investment Decision (FID) for a large-scale deep-sea gas project off the coast of East Kalimantan (Kaltim), with an investment value exceeding $15 billion.
This decision encompasses the development of the Gendalo–Gandang (South Hub) and Geng North-Gehem (North Hub) projects, which will take only 18 months from the approval of the Plan of Development (POD) in 2024, marking a significant acceleration in the development of this strategic national oil and gas project.
The project relies on deep-sea technology and the integration of existing infrastructure, including the Jangkrik FPU facilities and the Bontang LNG plant. This strategy is seen as capable of reducing costs while accelerating the gas commercialisation process.
The South Hub development will be carried out at depths of 1,000-1,800 metres with the drilling of seven production wells connected to the Jangkrik facilities. Meanwhile, the North Hub includes 16 production wells at depths of up to 2,000 metres, which will be channelled to a new FPSO facility with a capacity of more than 1 billion cubic feet of gas per day and 90,000 barrels of condensate per day.
Overall, the two projects hold resource potential of around 10 trillion cubic feet (TCF) of gas and 550 million barrels of condensate. Production is targeted to start in 2028 and reach its peak in 2029 with a capacity of around 2 billion cubic feet of gas per day.
The produced gas will be piped onshore to meet domestic needs and support LNG production at Bontang for export markets. The condensate will be processed at offshore facilities before being shipped using tanker vessels.
Head of the Special Task Force for the Implementation of Upstream Oil and Gas Business Activities (SKK Migas) Djoko Siswanto stated that this investment decision is a strong signal of increasing investor confidence in Indonesia’s oil and gas investment climate.
“This decision is an important step to support the increase in national gas production while strengthening Indonesia’s energy resilience,” he said, quoted on Thursday (19/3/2026).
Djoko also added that the jumbo investment will not only impact the energy sector but will also create multiplier effects for the economy, including the absorption of thousands of workers.
In addition, this project will be part of a joint business development between Eni and Petronas through the formation of a new company (NewCo), targeted to have a production capacity of more than 500,000 barrels of oil equivalent per day in 2029.
Since operating in Indonesia in 2001, Eni has become one of the main gas producers in the Kutai Basin area, Makassar Strait region, which is now developing as a strategic national gas production centre.
With its vast potential and the investment being poured in, this project not only becomes an important milestone for the development of Indonesia’s deep-sea gas but also reinforces Indonesia’s position as a key player on the global energy map.