Italian Oil Company Eni Indonesia Finalises Investment in Major Gas Project in East Kalimantan

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) gas projects offshore East Kalimantan (Kaltim).

This investment decision was made just 18 months after the approval of the Plan of Development (POD) in 2024, marking an acceleration in the development of Indonesia’s deepwater gas projects.

The projects utilise deepwater production technology and existing infrastructure, including the Jangkrik FPU and the reactivation of Train F at the Bontang LNG Plant facilities, enabling cost efficiency improvements and faster gas commercialisation timelines.

The development of Gendalo and Gandang will occur at sea depths of 1,000–1,800 metres with the drilling of seven production wells connected to the Jangkrik facilities.

Meanwhile, the North Hub project includes drilling 16 production wells at depths of 1,700–2,000 metres, which will connect to a new FPSO with processing capacity exceeding 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 of gas (TCF) and 550 million barrels of condensate.

Production is projected to begin in 2028 and reach its peak in 2029 with capacity of around 2 billion cubic feet of gas per day and 90,000 barrels of condensate per day.

Meanwhile, the condensate will be processed and stored at the offshore FPSO facilities before being transported by tanker ships.

This investment decision represents a key milestone in Indonesia’s deepwater gas development and strengthens the partnership between Eni and the Indonesian Government.

The significant gas and LNG volumes from this project will support Indonesia’s long-term energy resilience.

Meanwhile, the Head of SKK Migas, Djoko Siswanto, has welcomed the investment decision.