(WO) — Eni has received approval from the Indonesian authorities to develop two large gas fields, Geng North and Gehem, in the Kutei Basin. The approval includes a 20-year extension of the Ganal and Rapak licenses.

The Northern Hub project will integrate the Geng North and Gehem fields, which together contain significant gas and condensate reserves. The Geng North discovery, announced in October 2023, contains 5 trillion cubic feet (Tcf) of gas and 400 million barrels of condensate. The Gehem discovery contains 1.6 Tcf of gas. Production will be approximately 2 billion cubic feet per day (bcf/d) of gas and 80,000 barrels per day of condensate, utilizing existing infrastructure such as the Bontang LNG plant and the Jangkrik Floating Production Unit (FPU).

The Gendalo&Gandang development plan will add 2 trillion cubic feet of gas to the Ganal PSC. This development will extend the Jangkrik FPU production plateau by at least 15 years.

These projects are expected to increase local share and make the most of the Bontang LNG plant’s capacity. Eni also plans a drilling campaign over the next four to five years to explore further potential in the Kutei Basin, which is estimated to contain over 30 trillion cubic feet of gas.

“The approval of the Northern Hub and Gendalo and Gandang development plans by the Indonesian authorities is a crucial milestone on the way to the completion of both gas projects and is in line with our decarbonization and energy security strategy,” said Eni CEO Claudio Descalzi. “The establishment of a new production center in the Kutei Basin represents a turning point for Eni in Indonesia. This is the result of a consistent strategy that combines our strong exploration capabilities with the acquisition of IDD and Neptune assets.”

Eni operates the North Ganal block and has a majority stake in the Ganal and Rapak blocks. The company has been active in Indonesia since 2001 and currently produces around 95,000 barrels of oil equivalent per day (boe/d) in East Kalimantan.