Italian Company to Finalise Investment in Indonesia's Deepwater Project Next Week
Jakarta – The Special Working Unit for Upstream Oil and Gas Business Implementation (SKK Migas) has stated that the Final Investment Decision (FID) for a deepwater gas project in East Kalimantan, being developed by Italian oil and gas company Eni, is targeted to be formalised next week.
SKK Migas head Djoko Siswanto revealed that technical and administrative preparations for the investment approval have been completed, with the process now awaiting the schedule of the Ministry of Energy and Mineral Resources (ESDM) to formally sign off on the FID in Jakarta.
“Eni will also reach FID shortly; the gas price is 12.5 per cent of Brent,” Djoko stated to Finance Minister Purbaya Yudhi Sadewa during a Coordination Meeting on National Strategic Projects for Onshore LNG Abadi Masela at the Ministry of Finance on Tuesday, 24 February 2026.
He confirmed that the final investment decision is targeted for signature in the presence of the ESDM Minister next week. “Next week. Everything is ready. This is done; it just needs the Minister (ESDM) to come to Jakarta, sign, and the FID is complete,” Djoko said after the meeting.
Djoko explained that this final investment decision encompasses not one but two strategic projects simultaneously: the Gehem-Geng North and Gendalo-Gendang projects in deepwater East Kalimantan.
The gas project was previously known as the Indonesia Deepwater Development (IDD). The IDD was originally being developed by Chevron Indonesia Company, but Chevron withdrew from the project and Eni took over as the new project operator in 2023.
The project has now been divided into two regions: the northern hub (Northern Hub) at Gehem-Geng North and the southern hub (Southern Hub) at Gendalo-Gendang. This division forms part of the Plan of Development (PoD) submitted by Eni as the new contractor. With this restructuring, the former Chevron-operated deepwater oil and gas project no longer uses the IDD designation.
The investment value for developing the deepwater gas project is substantial. According to SKK Migas calculations, the total estimated investment cost for the combined development of both operating areas is projected to reach approximately US15billion, equivalenttoRp252.4trillion(basedonanexchangerateofRp16, 824perUS).