Eni Pours US$15 Billion Investment, Officially Develops Indonesia's Giant Gas Project

The Italian energy company Eni has officially made the Final Investment Decision (FID) for the Gendalo–Gandang (South Hub) and Geng North–Gehem (North Hub) gas projects offshore East Kalimantan.

This decision follows the approval of the 2024 Plan of Development (POD), marking an acceleration of the Indonesia Deepwater Development (IDD) project.

Jumbo Investment

Head of SKK Migas, Djoko Siswanto, described this step as a strong signal of global investors’ confidence in Indonesia’s upstream oil and gas investment climate, while also opening up the potential to absorb thousands of workers.

“With an investment worth US$15 billion, Eni is simultaneously running a tender process for the procurement of goods and services, and has already purchased items that are Long Lead Items (LLI),” he said.

Deepwater Technology and Production Scale

The project relies on deepwater production technology and the integration of existing infrastructure such as the Jangkrik FPU and Bontang LNG facilities, enabling cost reduction while accelerating gas monetisation.

Meanwhile, the North Hub includes 16 wells at depths of 1,700–2,000 metres, which will be connected to a new FPSO 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 potential of around 10 TCF of gas and 550 million barrels of condensate.