• Natural Gas News

    Eni announces gas discovery offshore Indonesia

Summary

Preliminary estimates indicate a total structure discovered volume of 5 trillion ft3 of gas in place with a content of condensate estimated up to 400mn barrels. [Image: Eni]

by: Shardul Sharma

Posted in:

Natural Gas & LNG News, Asia/Oceania, Liquefied Natural Gas (LNG), Corporate, News By Country, Indonesia

Eni announces gas discovery offshore Indonesia

Italy’s Eni on October 2 announced a gas discovery from the Geng North-1 exploration well drilled in North Ganal PSC, about 85 km off the coast of East Kalimantan in Indonesia. Preliminary estimates indicate a total structure discovered volume of 5 trillion ft3 of gas in place with a content of condensate estimated up to 400mn barrels.

“The ongoing exploration campaign, along with the recent acquisitions, is in line with Eni's energy transition strategy to progressively shift its portfolio mix towards gas and LNG, targeting 60% in 2030, and to increase its LNG equity portfolio. Indonesia, and South-East Asia in general, play a relevant role in this strategy,” the company said.

Eni said that the discovery has the potential to contribute to the creation of a new production hub, in the Northern part of the Kutei basin, to be connected to the Bontang LNG facilities on the coast of East Kalimantan.

It is estimated that, in addition to Geng North, more than 5 trillion ft3 of gas in place are present in undeveloped discoveries within the area of interest, while a significant multi-tcf exploration potential is under maturation through the ongoing studies, Eni added.

The Geng North discovery is adjacent to the Indonesia Deepwater Development (IDD) area that includes several stranded discoveries located within the Rapak and Ganal PSC blocks, for which Eni recently announced the acquisition of Chevron interests, increasing its participating interest and acquiring the operatorship.

“Significant synergies between the two areas are envisaged in terms of gas development options. The acquisition also provides the opportunity to fast track the development of the Gendalo and Gandang gas project through Eni's operated Jangkrik facilities,” the company said.

The Geng North discovery comes shortly after Eni's agreement to acquire Neptune Energy, another company with a presence in Indonesia, and which complements Eni's operations in East Kalimantan.