Eni Officially Takes Investment Decision for Deep-Sea Gas Project in East Kalimantan, Value Reaches US$15 Billion
JAKARTA – Global energy company Eni has officially taken the Final Investment Decision (FID) for the development of the Gendalo–Gandang (South Hub) and Geng North–Gehem (North Hub) deep-sea gas projects off the coast of East Kalimantan. This decision marks a significant acceleration, just 18 months after the approval of the Plan of Development (POD) in 2024.
The project development relies on deep-sea production technology and the utilisation of existing infrastructure, including the Jangkrik FPU facilities and the reactivation of Train F at the Bontang LNG Plant. This strategy is deemed capable of enhancing cost efficiency while accelerating gas commercialisation.
For the South Hub project, the development of Gendalo and Gandang 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 involves drilling 16 production wells at depths of 1,700–2,000 metres, which will be linked 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. Production is targeted 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 supply the domestic network and support LNG production at Bontang, for both domestic needs and exports. Meanwhile, the condensate will be processed and stored at the FPSO facilities before being shipped by tanker.
The Head of SKK Migas, Djoko Siswanto, welcomed the investment decision positively. He assessed that this FID 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,” he stated in a press release on Wednesday (18/3/2026).
Djoko added that the investment worth more than US$15 billion will also provide multiplier effects, including the absorption of thousands of workers. Currently, Eni is also conducting tender processes for goods and services procurement as well as Long Lead Item (LLI) procurement.
Furthermore, this project will be part of a strategic partnership between Eni and Petronas to form a new company (NewCo) with a target production of more than 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 and Makassar Strait, which is now developing as a strategic national gas production hub.