Indonesian authorities have approved Eni SPA, an Italian multinational energy company, for its offshore Gehem and Geng North fields development plan. The plan includes constructing a new production hub with a capacity of approximately two billion cubic feet of gas per day and 80,000 barrels of condensate per day. The new production hub, known as the Northern Hub, aims to extract five trillion cubic feet (Tcf) of gas and 400 million barrels of condensates from Geng North, along with 1.6 Tcf of gas from the adjacent Gehem area.
Geng North was discovered in 2023 under the North Ganal PSC. Meanwhile, Gehem fell under Eni’s control when the Italian energy company acquired Chevron Corp.’s operating stake in the Rapak PSC and the Ganal and Makassar Straits PSCs last year.
In addition to approving the Geng North and Gehem plans, the government also approved Eni’s development plan for the Gendalo and Gandang fields, which will be connected to existing infrastructure. Gendalo and Gandang are located in the Ganal block, distinct from the North Ganal block. Eni also obtained a 20-year extension for the Indonesia Deepwater Development (IDD) gas project, which includes the Ganal and Rapak blocks.
Eni controls 82% of the operating stakes in the Ganal and Rapak blocks, an increase from 20% following the Chevron acquisitions. The remaining 18% is held by China Petroleum and Chemical Corp. (Sinopec) through its Indonesian subsidiaries. In the Makassar Straits PSC, another block acquired from Chevron, Eni has a 72% operating stake, while Sinopec and Indonesia’s state-owned PT Pertamina hold 18% and 10%, respectively. In the North Ganal block, Eni possesses an 83.3% operating stake, with Singaporean company Agra Energi Pte. Ltd. holding the remaining 16.7%.
The Northern Hub plan involves the installation of flowlines and a new floating production and storage facility. Processed gas will be transported onshore to the Santan Terminal and the East Kalimantan pipeline network. Part of the gas will be liquefied at the Bontang facility, while the rest will be supplied to the domestic market. According to Eni, shuttle tankers will transport the condensates.
Meanwhile, Gendalo and Gandang will be connected to the Jangkrik floating production unit, which aims to access a combined gas reserve of two Tcf. Eni noted that developing Gendalo and Gandang will extend Jangkrik’s gas production plateau, approaching 750 mmscf/d (million standard cubic feet per day), by at least 15 years. Additionally, Eni plans to carry out a drilling campaign over the next 4-5 years to evaluate significant near-field exploration potential within the Eni-operated blocks in the Kutei Basin, which holds over 30 Tcf of gas and has been largely de-risked following the Geng North discovery.
According to Eni, Indonesia currently contributes 95,000 barrels of oil equivalent to the company’s production.
(Source: Rigzone)
