The Indonesian authorities have approved Eni’s Plan of Development (POD) for the Geng North (North Ganal PSC) and Gehem (Rapak PSC) fields in the Kutei offshore basin.

This involves an integrated development of the two fields including a new offshore production complex called “Northern Hub”.

In addition, the authorities approved the POD for subsea connections to the Gendalo and Gandang fields in the Ganal PSC and granted Eni a 20-year extension for the IDD licenses named Ganal and Rapak.

The development will create new gas and condensate production of 2 Bcf/d and 80,000 bbl/d in the East Kalimantan region, building on existing assets in the region, such as the Jangkrik FPU and the onshore Bontang LNG plant.

The Northern Hub POD development will include the 5 Tcf of gas and 400 MMbbl of condensates from the Geng North discovery announced by Eni in October 2023, as well as 1.6 Tcf from the nearby Gehem discovery via subsea drilling, flowlines and a newly built FPSO. This will have a capacity of approximately 1 Bcf/d of gas and 80,000 bbl/d of condensates, with a storage capacity of 1 MMbbl.

After treatment on board the FPSO, the gas is piped to the onshore receiving facilities at the Santan Terminal and to the pipeline network in East Kalimantan. It is partially liquefied at the Bontang LNG plant and part of the volumes are piped to the domestic market.

The condensate produced is stabilized and stored on board the FPSO and then transferred to shuttle tankers.

As for the Gendalo and Gandang PODs, this requires the development of 2 Tcf of gas reserves in the Ganal PSC through subsea drilling, which will be carried out with the Jangkrik FPU, extending the vessel’s gas production plateau of nearly 750 MMcf/d by at least 15 years.

Eni began gas production from the Jangkrik Complex deepwater project in the Muara Bakau block in 2017.