Home Fossil Energy Eni sets its cap on ‘game changer’ move in Asia as its new gas and condensates offshore production hub gets the go-ahead
August 23, 2024,
by
Melisa Čavčić
Italy’s energy giant Eni has received a green light for the integrated development of the two fields, which will bring to life a new production hub in the Kutei Basin off the coast of Indonesia. This will enable the firm to boost its gas arsenal.
FPU Jangkrik; Source: Eni
As the Indonesian authorities have approved Eni’s plan of development (POD) for the Geng North (North Ganal PSC) and Gehem (Rapak PSC) fields, the development of these fields is expected to create the Northern Hub, which will be a new production hub in the Kutei Basin.
This project will develop 5 trillion cubic feet (tcf) of gas and 400 million barrels of condensates of the Geng North discovery announced in October 2023, along with the 1.6 tcf of the nearby Gehem discovery via subsea wells, flowlines, and a newly built FPSO with a handling capacity of about 1 bcf/d gas and 80,000 barrels of condensates per day and a storage capacity of 1 million barrels.
While gas will be treated on board the FPSO and then piped to the onshore receiving facilities at Santan terminal and the East Kalimantan pipeline network, it will be partly liquefied at the Bontang liquefied natural gas (LNG) facility and partly piped for the domestic market. On the other hand, the condensate production will be stabilized and stored onboard the FPSO and then evacuated via shuttle tankers.
-
Posted: 10 months ago
Furthermore, the Indonesian authorities have also given the all-clear for the POD covering Gendalo & Gandang fields (Ganal PSC), which envisages the development of the cumulative 2 tcf gas reserves in the Ganal PSC via subsea wells tied back to the floating production unit (FPU) Jangkrik. The Italian energy player claims that this project will extend Jangkrik’s gas production plateau, which is nearing 750 mmscf/d, by at least 15 years.
As the company has been awarded a 20-year extension of the IDD licenses, named Ganal and Rapak, it is set to establish production of approximately 2 bcf/d of gas and 80,000 bopd of condensates in the East Kalimantan region, both for domestic and international markets, leveraging synergies with existing facilities in the area, such as the Bontang LNG plant and the FPU Jangkrik.
Claudio Descalzi, CEO of Eni, commented: “The approval of the Northern Hub and Gendalo & Gandang plans of development by the Indonesian authorities marks a crucial milestone towards the FID of both gas projects, in line with our decarbonization and energy security strategy. The establishment of a new production hub in the Kutei Basin represents a game changer for Eni in Indonesia.
“This is the result of a consistent strategy that combines our distinctive exploration skills with the acquisition of IDD and Neptune assets.