Italy’s Eni is poised to reach next month a final investment decision to develop two offshore gas fields in Indonesia, the head of the Southeast Asian country’s upstream regulator said on Tuesday.
Eni is set to approve in March the development of the Geng North and Gendalo-Gendang gas projects in the Kutei basin, Djoko Siswanto, the head of the Indonesian regulator SKK Migas, said, as carried by Reuters.
Eni will manage the projects via its new joint venture with Malaysia’s Petronas for joint asset management in Indonesia and Malaysia, according to the official.
In the summer of 2024, Eni announced that the Indonesian authorities approved the Plan of Development (POD) of the Geng North (North Ganal PSC) and Gehem (Rapak PSC) fields. The integrated development of the two fields will create a new production hub, called Northern Hub, in the Kutei Basin. The Indonesian authorities have also approved the plan for Gendalo Gandang fields (Ganal PSC). Additionally, Eni was awarded by the Indonesian authorities a 20-year extension of the licenses named Ganal and Rapak.
As part of the plan, Eni aims to establish a significant gas and condensate production of approximately 2 bcf/d of gas and 80,000 bopd of condensates in the East Kalimantan region, both for domestic and international market. The gas supply system will use synergies with existing facilities in the area, such as the Bontang LNG Plant and the Jangkrik Floating Production Unit (FPU).
At the end of last year, Eni and Petronas announced plans for $15 billion in investment in developing the proved reserves in Indonesia and Malaysia over the next five years.
As part of the plans, Eni and Petronas are looking to start up as many as eight new upstream projects in Indonesia and Malaysia over the next three years, Eni’s chief executive Claudio Descalzi said in November.
By Tsvetana Paraskova for Oilprice.com
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