Italian energy company Eni was awarded the East Ganal exploration block in Kutei Basin, one of the most promising hydrocarbon provinces in Indonesia, the company announced on Wednesday.
The award, in which Eni has a 100 percent participating interest, will see the company strengthen its position and its upstream portfolio in the East Kalimantan’s Kutei Basin, as well as in the gas and LNG market of the Asia Pacific region, according to the press release.
East Ganal is a new “gross split” Production Sharing Contract (PSC) covering an area of about 5,100 square kilometers. It adjoins the Eni-operated Muara Bakau and East Sepinggan PSCs, in the Makassar Strait offshore East Kalimantan.
"In the Muara Bakau PSC, Eni commenced production from the Jangkik deepwater field in May 2017. In April 2018, Eni was also granted the approval of the Plan of Development for the Merakes discovery located in East Sepinggan PSCs," the press release said.
According to the company's press release, this further development project, "using existing Jangkrik and Bontang facilities, will allow an increase in the availability and flexibility of gas supply both for the domestic market and for export, as well as strengthening Eni’s position in the LNG market in Asia."
Eni has been operating in Indonesia since 2001 and now holds working interests in fourteen exploration and production assets.
By Muhsin Baris Tiryakioglu