The Italian energy group Eni has received permits and license extensions from the Indonesian authorities, paving the way for the expansion of gas and condensate production.
The Indonesian authorities have given Eni the green light for the Plan of Development (POD) of the Geng North and Gehem fields, which are to form a new production hub, the so-called Northern Hub, in the Kutei Basin.
The authorities have also approved the POD for the Gendalo and Gandang fields within the Ganal PSC.
In addition, Eni was granted a 20-year extension of the licenses for the Ganal and Rapak blocks.
The Northern Hub is expected to be crucial to Eni’s operations, as it is where the development of the 5 trillion cubic feet (tcf) of gas and 400 million barrels of condensate from the Geng North discovery was announced in October 2023.
The Gehem discovery nearby will provide an additional 1.6 trillion cubic feet of gas.
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By GlobalData
Planned facilities include subsea drilling, flowlines and a newly constructed floating production, storage and offloading unit (FPSO) with a capacity of approximately one billion cubic feet per day (bcf/d) of gas and 80,000 barrels per day of condensate, as well as a storage capacity of one million barrels.
The gas from these developments will be processed on the FPSO, then transported to the Santan terminal onshore and integrated into the East Kalimantan pipeline network.
Part of the gas will be liquefied at the Bontang LNG plant and the rest will be supplied to the domestic market.
The condensate production is stabilized on the FPSO and transferred to shuttle tankers for evacuation.
The approved development plan for the Gendalo and Gandang fields envisages the use of subsea wells linked to the Jangkrik floating production unit, which is expected to extend the gas production plateau, currently at approximately 750 million standard cubic feet per day (mmscf/d), by at least 15 years.
Eni CEO Claudio Descalzi said: “The approval of the Northern Hub and Gendalo&Gandang development plans by the Indonesian authorities represents a crucial milestone on the path to securing financing for both gas projects and is in line with our decarbonisation and energy security strategy.”
In addition to these developments, Eni plans to launch a drilling campaign in the next four to five years.
The objective is to assess the significant exploration potential in Eni’s Kutei Basin blocks, which are estimated to contain over 30 trillion cubic feet of gas, a potential that was largely defused following the Geng North discovery.
