Eni to develop key natural gas production, exploration assets in Indonesia
(WO) – The President of the Republic of Indonesia Joko Widodo met Eni Chief Executive Officer Claudio Descalzi in Jakarta on Feb. 2 to discuss the company’s ongoing activities in the country and to outline initiatives in the areas of energy transition and decarbonization.
During the meeting, Descalzi disclosed Eni’s plans in Indonesia following significant milestones in 2023, notably the discovery of 5 Tcf of natural gas with the Geng North-1 well in the North Ganal PSC, the acquisition of the Indonesia Deepwater Development (IDD) assets from Chevron, and the further consolidation of Eni’s position in most of the key exploration and production blocks of the Kutei basin, following the acquisition of Neptune.
Descalzi illustrated the development plans for the IDD assets and the new Geng North production hub to be established in the East Kalimantan region. He highlighted how these achievements will significantly enhance the country’s natural gas potential, also in consideration of the significant near-field exploration potential in Eni-operated blocks, largely de-risked following the Geng North discovery.
The new 1 Bcfd natural gas hub that will be established in the northern Kutei basin, as well as the extension of the plateau at 750 MMcfd in the existing facilities in the southern Kutei basin, will allow Indonesia to increase its gas production significantly, both for domestic use and for export. The new projects, along with the ongoing development of East Merakes and Maha fields, will drive a major positive impact on local content, and will increase the utilization of the available capacity at Bontang LNG plant, in addition to the gas required for the domestic consumption.
During the meeting, the Ministry of Energy and Mineral Resources of the Republic of Indonesia and Eni signed a Memorandum of Understanding to cooperate in the fields of energy transition and decarbonization. The MoU will allow Eni to assess the potential production of agri-feedstock for Enilive biorefineries, mainly from agro-industrial and forestry residues. Eni will also analyze Carbon Capture Utilization and Storage (CCUS) and energy efficiency opportunities in order to reduce greenhouse gas emissions from upstream and hard-to-abate sectors.
Eni has been operating in Indonesia since 2001 and presently has a large portfolio of assets in exploration, development, and production phases, with a current equity production of approximately 80,000 boed from the Jangkrik and Merakes gas fields in East Kalimantan.
Lead photo source: Eni
