BAKU, Azerbaijan, August 26. Eni has announced that Indonesian authorities have approved the Plan of Development (POD) for the Geng North (North Ganal PSC) and Gehem (Rapak PSC) fields, paving the way for the creation of a new production hub, dubbed the Northern Hub, in the Kutei Basin, Trend reports.
The authorities also greenlit the POD for the Gendalo & Gandang fields (Ganal PSC) and granted Eni a 20-year extension on the Ganal and Rapak IDD licenses.
The Northern Hub will significantly boost gas and condensate production in East Kalimantan, with an estimated output of 2 billion cubic feet per day (bcf/d) of gas and 80,000 barrels per day (bopd) of condensates. This production will serve both domestic and international markets, leveraging existing infrastructure such as the Bontang LNG Plant and the Jangkrik Floating Production Unit (FPU).
The development plan for the Northern Hub includes the exploitation of the 5 trillion cubic feet (TCF) gas reserves and 400 million barrels of condensates from the Geng North discovery, along with the nearby Gehem discovery. These resources will be processed on a newly built FPSO, with gas being piped to onshore facilities and partially liquefied at Bontang LNG. Condensates will be stored on the FPSO and transported via shuttle tankers.
In parallel, the approved POD for the Gendalo & Gandang fields will develop an additional 2 TCF of gas reserves in the Ganal PSC, extending the Jangkrik FPU’s production plateau by at least 15 years.
These projects, along with ongoing developments in the East Merakes and Maha fields, highlight the strong strategic partnership between Eni and SKK Migas and will have a significant positive impact on local content and the utilization of the Bontang LNG plant.
Eni also plans a drilling campaign over the next 4-5 years to explore the near-field potential in its Kutei Basin blocks, estimated to hold over 30 TCF of gas.
Eni's CEO, Claudio Descalzi, remarked, “The approval of the Northern Hub and Gendalo & Gandang PODs marks a crucial milestone towards final investment decisions for these gas projects. Establishing a new production hub in the Kutei Basin is a game changer for Eni in Indonesia, reinforcing our leadership in this world-class basin and aligning with our decarbonization and energy security strategy.”
Eni operates the North Ganal Block – Geng North field with an 83.3% stake, in partnership with Agra Energi Pte Ltd, which holds 16.7%. In the Ganal and Rapak Blocks, Eni holds an 82% interest, with Tip Top as the partner holding 18%.
Eni has been active in Indonesia since 2001 and currently has a substantial portfolio of assets, producing approximately 95,000 barrels of oil equivalent per day (boe/d) in East Kalimantan.