(IN BRIEF) Eni has received approval from Indonesian authorities for the development of the Geng North, Gehem, and Gendalo&Gandang gas fields, which will lead to the creation of a new production hub, the Northern Hub, in the Kutei Basin, East Kalimantan. This hub is expected to produce significant amounts of gas and condensates, enhancing both domestic supply and export capabilities. Eni has also secured a 20-year extension for its Ganal and Rapak licenses, solidifying its long-term presence in Indonesia.
(PRESS RELEASE) MILAN, 24-Aug-2024 — /EuropaWire/ — In a significant advancement for the energy sector in Indonesia, Eni has received approval from the Indonesian authorities for the development of several critical gas fields, including Geng North and Gehem. These developments will culminate in the creation of a new production hub, the Northern Hub, in the Kutei Basin, East Kalimantan. Additionally, Eni has been granted a 20-year extension for its Ganal and Rapak licences, solidifying its long-term presence in the region.
The Northern Hub is poised to become a major center for gas and condensate production, with an anticipated output of approximately 2 billion cubic feet of gas per day and 80,000 barrels of condensates daily. This project will leverage existing infrastructure, such as the Bontang LNG Plant and the Jangkrik Floating Production Unit (FPU), ensuring efficient integration and utilization of resources.
The development plans for the Geng North and Gehem fields, approved under the Northern Hub initiative, involve the extraction of significant gas and condensate reserves through advanced subsea technology and a new Floating Production Storage and Offloading (FPSO) unit. The Gendalo&Gandang fields will similarly enhance the region’s gas output by connecting to existing facilities, thereby extending the production life of the Jangkrik FPU by at least 15 years.
These strategic developments, in collaboration with SKK Migas, Indonesia’s oil and gas regulatory agency, are expected to have a profound impact on local content and energy security. The projects will boost gas availability for domestic consumption and enhance the operational capacity of the Bontang LNG plant.
Eni’s CEO, Claudio Descalzi, emphasized that these approvals mark a pivotal moment for Eni in Indonesia, aligning with the company’s broader decarbonization and energy security goals. The establishment of the Northern Hub not only strengthens Eni’s leadership in the Kutei Basin but also underscores the importance of strategic partnerships with local authorities.
Eni has been a significant player in Indonesia since 2001, with a robust portfolio spanning exploration, development, and production. The company currently produces around 95,000 barrels of oil equivalent per day (boe/d) in East Kalimantan, reinforcing its commitment to the region’s energy development.
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First published in this link of EuropaWIRE.
