Italian Company Eni to Develop Two Offshore Gas Projects in Indonesia

Eni is scheduled to approve the development of the Geng North and Gendalo-Gendang gas projects in the Kutei basin in March, said Djoko Siswanto, head of Indonesian regulator SKK Migas, as reported by Reuters.

According to the official, Eni will manage the projects through its new joint venture with Petronas Malaysia for the joint management of assets in Indonesia and Malaysia.

In the summer of 2024, Eni announced that Indonesian authorities had approved the Development Plan (POD) for the Geng North field (PSC Ganal Utara) and Gehem (PSC Rapak). The integrated development of the two fields will create a new production hub, called the Northern Hub, in the Kutei Basin. Indonesian authorities have also approved plans for the Gendalo Gandang field (PSC Ganal). In addition, Eni also obtained a 20-year license extension from Indonesian authorities for the Ganal and Rapak licenses.

As part of the plan, Eni aims to build significant gas and condensate production, at around 2 bcf/d of gas and 80,000 bopd of condensate in the East Kalimantan region, for both domestic and international markets. The gas supply system will leverage synergies with existing facilities in the area, such as the Bontang LNG Plant and the Jangkrik Floating Production Unit (FPU).

At the end of last year, Eni and Petronas announced a $15 billion investment plan to develop proven reserves in Indonesia and Malaysia over the next five years.

As part of the plan, Eni and Petronas plan to start up to eight new upstream projects in Indonesia and Malaysia over the next three years, said Eni CEO Claudio Descalzi in November.