Eni Unveils Significant Gas Discovery in Indonesia Strengthening Energy Reserves

03 Oct, 2023

Eni Unveils Significant Gas Discovery in Indonesia Strengthening Energy Reserves

Italian energy conglomerate Eni has unveiled a significant gas discovery off the coast of East Kalimantan, Indonesia. This groundbreaking find, located in the North Ganal Production Sharing Contract (PSC), specifically at the Geng North-1 exploration well, has the potential to revolutionize the region's energy landscape.

Preliminary assessments suggest that this discovery could yield a staggering 140 billion cubic meters (5 trillion cubic feet) of natural gas. The exploratory well, drilled to a depth of 5,025 meters in water approximately 1,947 meters deep, revealed a gas column approximately 50 meters thick within a Miocene sandstone reservoir characterized by exceptional petrophysical properties.

What makes this discovery even more remarkable is its strategic location. Situated about 85 kilometers (53 miles) off the coast, it has the potential to serve as a pivotal production hub in the northern section of the Kutei Basin. Eni envisions linking it to the existing Bontang liquefied natural gas (LNG) facilities along the East Kalimantan coast.

Anticipated daily gas production from this newfound resource is estimated to range between 2.2 and 2.7 million cubic meters, further solidifying Eni's position in the global energy market.

This development aligns seamlessly with Eni's broader energy transition strategy, which aims to shift its portfolio toward gas and LNG, targeting 60 percent by 2030, up from the current 50 percent. Indonesia and Southeast Asia are integral to this strategy, reflecting their growing significance in the company's operations.

Notably, this announcement follows Eni's recent acquisition of interests in three Kutei Basin blocks, strengthening its presence in East Kalimantan. Eni, active in Indonesia since 2001, already manages a substantial portfolio of exploration, development, and production assets, producing approximately 80,000 barrels of oil equivalent per day from fields such as Jangkrik and Merakes in East Kalimantan.