Eni Accelerates Energy Transition with Giant Gas Discovery off Indonesia’s East Kalimantan

Eni Accelerates Energy Transition with Giant Gas Discovery off Indonesia’s East Kalimantan

(IN BRIEF) Eni, the global energy company, has made a significant gas discovery through the Geng North-1 exploration well off the coast of East Kalimantan in Indonesia. Preliminary estimates suggest a gas volume of 5 trillion cubic feet (Tcf) with condensate content of up to 400 thousand barrels. This discovery aligns with Eni’s strategy to shift towards gas and LNG and could become a major production hub. It is adjacent to other strategic areas and will facilitate the development of additional gas reserves. The move follows Eni’s acquisition of Chevron interests in the region and an agreement to acquire Neptune Energy, enhancing its position in the North Ganal Block.

(PRESS RELEASE) SAN DONATO MILANESE (MILAN), 2-Oct-2023 — /EuropaWire/ —  Eni S.p.A. (BIT: ENI), an Italian multinational energy company with focus on innovation, efficiency and accessibility for all, is thrilled to announce a substantial gas discovery through the Geng North-1 exploration well, situated in the North Ganal Production Sharing Contract (PSC), approximately 85 kilometers off the coast of East Kalimantan in Indonesia. Preliminary estimates indicate the discovery of a total structure volume of 5 trillion cubic feet (Tcf) of gas in place, accompanied by an estimated condensate content of up to 400 thousand barrels (Mbbls). The acquired data will facilitate the evaluation of fast-track development options.

Geng North-1, drilled to a depth of 5,025 meters in water 1,947 meters deep, encountered a gas column approximately 50 meters thick within a Miocene sandstone reservoir exhibiting excellent petrophysical properties. An extensive data acquisition campaign has been carried out, and a well production test (DST) successfully performed to assess the gas discovery. Despite limitations imposed by test facilities, this allowed for an estimation of a well capacity ranging from 80 to 100 million standard cubic feet per day (mmscfd) and about 5-6 thousand barrels per day (kbbld) of condensate.

This discovery underscores the effectiveness of Eni’s strategic approach, combining deep geological expertise with advanced geophysical technologies to create value. It aligns with Eni’s energy transition strategy, focusing on a gradual shift towards gas and LNG, targeting 60% of the portfolio in 2030, and expanding its LNG equity portfolio. Indonesia and Southeast Asia play a pivotal role in this strategy.

Due to its size and strategic location, this discovery has the potential to establish a new production hub in the Northern part of the Kutei Basin, connecting to the Bontang LNG facilities on the East Kalimantan coast, utilizing available ullage capacity. In addition to Geng North, over 5 Tcf of gas in place is believed to exist in undeveloped discoveries within the area, with significant multi-Tcf exploration potential currently under study.

The Geng North discovery neighbors the Indonesia Deepwater Development (IDD) area, including several stranded discoveries within the Rapak and Ganal PSC blocks, for which Eni recently acquired Chevron interests, increasing its participating interest and operatorship. Significant synergies are anticipated in terms of gas development options. The acquisition also expedites the development of the Gendalo and Gandang gas project (approximately 2 Tcf of gas reserves) through Eni’s operated Jangkrik facilities.

This discovery follows Eni’s recent agreement to acquire Neptune Energy, which will further bolster Eni’s presence in the North Ganal Block.

Eni North Ganal Limited holds a 50.22% participating interest in the Block, with Neptune Energy North Ganal BV and Agra Energi I Pte Ltd as partners, holding the remaining 38.04% and 11.74% stakes, respectively.

Eni has been actively operating in Indonesia since 2001, maintaining a substantial portfolio of assets in exploration, development, and production phases. The company’s current equity production stands at approximately 80,000 barrels of oil equivalent per day, derived from the Jangkrik and Merakes fields in East Kalimantan.

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SOURCE: Eni S.p.A.