Italy's energy giant Eni announced on Monday a significant gas discovery about 85 kilometers off the coast of East Kalimantan in Indonesia.
The Geng North-1 exploration well, drilled in the North Ganal Production Sharing Contract (PSC), is estimated to yield around 5 trillion cubic feet (Tcf) of gas and up to 400,000 barrels of condensate.
The discovery has the potential to contribute substantially to the creation of a new production hub in the northern part of the Kutei Basin, which will later be connected to the Bontang Liquefied Natural Gas (LNG) facilities on the coast of East Kalimantan.
The Geng North discovery comes shortly after the announcement of Eni's agreement to acquire Neptune Energy, whose completion will further strengthen Eni's position in the North Ganal Block.
In addition, an estimate of more than 5 Tcf of gas has been found in undeveloped discoveries in the same region, and ongoing studies have detected significant exploration potential.
Eni has been operating in Indonesia since 2001 and currently has a large portfolio of assets in exploration, development, and production phases, with a current equity production of approximately 80,000 barrels of oil equivalent per day from the Jangkrik and Merakes fields in East Kalimantan.
Indonesia and Southeast Asia play a relevant role in the company'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.
By Duygu Alhan