Eni given go ahead for multi-field gas production hub offshore East Kalimantan

Aug. 23, 2024
The Indonesian authorities have approved Eni’s plan of development for the Geng North and Gehem fields in the offshore Kutei basin.

The Indonesian authorities have approved Eni’s plan of development (POD) for the Geng North (North Ganal PSC) and Gehem (Rapak PSC) fields in the offshore Kutei basin.

This will be an integrated development of the two fields featuring a new offshore production complex known as the Northern Hub.

In addition, the authorities have approved the POD for subsea tiebacks of the Gendalo and Gandang fields in the Ganal PSC, and they have granted Eni a 20-year extension for the IDD licenses named Ganal and Rapak.

The development will establish new gas and condensates production of 2 Bcf/d and 80,000 bbl/d in the East Kalimantan region, which will draw on existing facilities in the area such as the Jangkrik FPU and the onshore Bontang LNG plant.

The Northern Hub POD development involves the 5 Tcf of gas and 400 MMbbl of condensates of the Geng North discovery announced by Eni in October 2023 and 1.6 Tcf from the nearby Gehem discovery via subsea wells, flowlines and a newbuild FPSO. This will have a capacity to handle about 1 Bcf/d of gas and 80,000 bbl/d of condensates, with a storage capacity of 1 MMbbl.

Following treatment onboard the FPSO, the gas will head through a pipeline to the onshore reception facilities at Santan Terminal and to the East Kalimantan pipeline network. It will be part-liquefied at Bontang LNG facility with some of the volumes piped onward to the domestic market.

Produced condensates production will be stabilized and stored onboard the FPSO, then offloaded to shuttle tankers.

As for the Gendalo and Gandang POD, this calls for development of 2 Tcf of gas reserves in the Ganal PSC through subsea wells tied back to the Jangkrik FPU, extending the vessel’s near-750 MMcf/d gas production plateau by at least 15 years.

Eni started gas production from the deepwater Jangkrik Complex project in the Muara Bakau block in 2017.

Currently, Eni continues its developments of the offshore East Merakes and Maha fields, in partnership with SKK Migas.

Over the next four to five years, the company plans a new a drilling campaign to investigate the near-field exploration potential across its operated blocks in the Kutei basin, which it assesses as more than 30 Tcf of gas following the Geng North discovery.

Eni CEO Claudio Descalzi said, “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…

“The strategic partnership with the Indonesian authorities has been pivotal to reaching these key milestones only a few months after the Geng North discovery and the completion of the IDD and Neptune acquisition processes.”

Eni has a 83.3% controlling interest in the North Ganal Block – Geng North field, with Agra Energi holding the remaining 16.7%. Eni has an 82% operating interest in the Ganal and Rapak blocks, in partnership with Tip Top (18%).

Courtesy SBM Offshore LinkedIn
FPSO Alexandre de Gusmão
Courtesy Shana News Agency; "South Pars Phase 11 Gas Production Rising" article published Nov. 10, 2024
South Pars Phase 11 Gas Production Rising
Courtesy Bruno Castro / Petrobras News Agency
Boaventura Energy Complex