US$15 Billion Mega Investment: Eni Accelerates Gendalo-Geng North Gas Development in East Kalimantan

Balikpapan – The global energy company Eni has officially approved the Final Investment Decision (FID) for the development of a giant gas project offshore East Kalimantan. Valued at more than US$15 billion (approximately Rp230 trillion), the project includes the development of the South Hub (Gendalo-Gandang) and North Hub (Geng North-Gehem).

This investment decision was made just 18 months after the approval of the Plan of Development (POD) in 2024. The acceleration aims to strengthen national energy resilience through the exploitation of deep-sea gas in the Kutai Basin, Makassar Strait.

The Head of SKK Migas, Djoko Siswanto, welcomed this step positively as a strong signal of global investor confidence in Indonesia’s upstream oil and gas climate. In addition to the fantastic investment value, the project is expected to provide multiplier effects for the local economy.

“With that investment value, it is estimated to absorb a large number of workers, up to thousands of people,” said Djoko Siswanto.

Technically, the South Hub development will drill 7 production wells at depths of 1,000–1,800 metres connected to the Jangkrik FPU facility. Meanwhile, the North Hub includes 16 wells at depths up to 2,000 metres that will connect to a new FPSO with a capacity of 1 billion cubic feet of gas per day (BCFD) and 90,000 barrels of condensate per day.

The total resource potential from both projects reaches 10 trillion cubic feet of gas (TCF) and 550 million barrels of condensate. First production is projected to start flowing in 2028 and reach its peak in 2029.

Djoko added that Eni is currently conducting the tender process for the procurement of goods and services as well as the purchase of Long Lead Item (LLI) category goods. “The Managing Director of Eni Indonesia has reported this FID announcement to the Minister of Energy and Mineral Resources,” he concluded.

The gas produced will supply domestic needs through onshore pipeline networks and support LNG production at the Bontang Refinery for both domestic and export markets. The project will also become a strategic asset in the business cooperation between Eni and Petronas through the establishment of a new company (NewCo).