Eni Invests Rp 230 Trillion, Deep-Sea Gas Project in Kalimantan Set for Production in 2028
Liputan6.com, Jakarta - The global energy company Eni has officially taken the Final Investment Decision (FID) for the development of the deep-sea gas projects Gendalo–Gandang (South Hub) and Geng North–Gehem (North Hub) off the coast of East Kalimantan.
This decision was made just 18 months after the approval of the Plan of Development (POD) in 2024, marking a significant acceleration in the development of Indonesia’s deep-sea gas projects.
SKK Migas Head Djoko Siswanto welcomed the investment decision positively. According to him, this step serves as a strong signal of global investors’ confidence in Indonesia’s upstream oil and gas investment climate.
“This investment decision is an important step in supporting the increase in national gas production while strengthening Indonesia’s energy resilience. SKK Migas, together with the government, will continue to encourage the acceleration of strategic projects like this to provide maximum benefits for the country and society as well as to boost economic growth,” he stated in a written release on Wednesday (18/3/2026).
The project will utilise deep-sea production technology and existing infrastructure, such as the Jangkrik Floating Production Unit (FPU) and the reactivation of Train F facilities at the Bontang LNG Plant. This approach is expected to enhance cost efficiency and accelerate the gas commercialisation process.
The South Hub development will take place at depths of 1,000 to 1,800 metres, involving the drilling of seven production wells connected to the Jangkrik facilities.
Meanwhile, the North Hub project includes drilling 16 production wells at depths of 1,700 to 2,000 metres. This project will also connect to a new FPSO facility with a processing capacity of more than 1 billion cubic feet of gas per day and 90,000 barrels of condensate per day.
Overall, the two projects have resource potential of around 10 trillion cubic feet (TCF) of gas and 550 million barrels of condensate.
Gas production is projected to begin in 2028 and reach its peak in 2029, with a capacity of around 2 billion cubic feet of gas per day and 90,000 barrels of condensate per day.
The produced gas will be piped onshore to meet domestic needs and support LNG production at the Bontang facilities, for both the domestic market and exports.
Meanwhile, the condensate will be processed and stored at the offshore FPSO facilities before being shipped via tanker vessels.
This investment decision is seen as a key milestone in the development of Indonesia’s deep-sea gas sector, while also strengthening cooperation between Eni and the Indonesian government.
Djoko added that the project, valued at more than $15 billion, will also generate multiplier effects, including the absorption of a large workforce.
“With this investment value, it is estimated to absorb a great deal of labour, up to thousands of people,” he said.
Looking ahead, this project will also be part of the cooperation between Eni and Malaysia’s energy company Petronas in forming a new company (NewCo) targeted to have production exceeding 500,000 barrels of oil equivalent per day in 2029.
For information, Eni has been operating in Indonesia since 2001 and is one of the main gas producers in the Kutai Basin, Makassar Strait, which is now developing as a strategic national gas production hub.