Italian Energy Giant Eni Hammers Down Investment in East Kalimantan's Deep-Sea Gas Project, Targeting...

The upstream oil and gas sector in East Kalimantan is preparing to welcome a wave of massive investment following the Italian energy company Eni’s official final investment decision (FID) for the deep-sea gas development project off the coast of Benua Etam. This major step includes the development of two main production centres, namely the South Hub (Gendalo-Gandang) and the North Hub (Geng North-Gehem), which are expected to strengthen East Kalimantan’s position as a national energy pillar.

Cumulatively, these two projects hold enormous resource potential, reaching around 10 trillion cubic feet of gas (TCF) and 550 million barrels of condensate. The target is for the first gas flow to begin production in 2028 and reach its peak in 2029 with a capacity of 2 billion cubic feet of gas per day. This production will not only focus on meeting domestic needs through onshore pipeline networks but also support LNG production in Bontang to serve the global export market.

The Head of SKK Migas, Djoko Siswanto, warmly welcomed this investment decision as a positive signal of global investor confidence in Indonesia’s business climate. With an estimated investment value exceeding US$15 billion, or equivalent to hundreds of trillions of rupiah, the project is certain to provide multiplier effects for the regional economy, including the creation of jobs for thousands of workers.

In the future, this project will also be part of a major cooperation strategy between Eni and Petronas through the establishment of a new company (NewCo). Since beginning operations in Indonesia in 2001, Eni has continued to strengthen its position as one of the main gas producers, making the Makassar Strait area the most strategic gas production centre that will support Indonesia’s energy resilience in the future.