Final Investment Decisions Eni Approves Deep Water Gas Projects in Indonesia

Eni has undertaken Final Investment Decisions for the Gendalo and Gandang gas project (South hub) and for the Geng North and Gehem fields (North hub) in Indonesia. With this, the company is set to deliver up to 2 bscfd of gas and 90,000 bpd of condensate at plateau.

Milan/Italy – Eni has taken the Final Investment Decisions (FIDs) for the Gendalo and Gandang gas project (South Hub) and for the Geng North and Gehem fields (North Hub), only 18 months after the approval of the Projects of Development (PODs) in 2024. The milestone confirms the fast pace of development of Eni’s deep water gas projects offshore East Kalimantan.

The developments combine state of the art technologies with the leveraging of existing infrastructure, including the Jangkrik Floating Production Unit (FPU) and the Bontang liquefaction plant. This integrated approach enables significant cost efficiencies and accelerates time to market.

The Final Investment Decision for the North Hub and South Hub projects once again demonstrates Eni’s strong ability to maximize value by combining exceptional exploration performance with a distinctive fast track development model. This milestone reflects the excellent cooperation among Eni, co-venturers and the Government of Indonesia, allowing Eni to deliver material volumes of gas and LNG to support long term domestic and global energy security.

The Gendalo and Gandang development plan, in water depths ranging from 1,000 to 1,800 meters, includes the drilling of seven producing wells and the installation of deep water subsea production systems tied back to Jangkrik FPU. For the North Hub, the project foresees the drilling of 16 producing wells at water depths between 1,700 and 2,000 meters, and the installation of subsea systems linked to a newly built FPSO capable of processing over 1 bscfd of gas and 90,000 bpd of condensate, with a storage capacity of 1.4 million barrels.

The combined volumes in place for the two projects amount to nearly 10 Tcf of gas initially in place (GIIP), with 550 million barrels of associated condensate. The two projects are expected to start up in 2028 and Eni will reach a production plateau of 2 bscfd of gas and 90,000 bpd of condensate in 2029. The gas will be transported onshore via an export pipeline to a receiving facility feeding both the existing domestic pipeline network and the Bontang LNG plant. The LNG produced will supply domestic demand as well as international markets. Condensate will be processed and stored offshore in the FPSO for export via shuttle tanker.

The development plan also includes extending the operating life of the Bontang LNG plant by reactivating one of its currently idle liquefaction trains (Train F). These projects reaffirm Eni’s long term commitment to Indonesia’s growing offshore gas sector, enhancing gas supply while maximizing synergies with existing infrastructure in East Kalimantan and the involvement of significant local content. In particular, the development of Geng North and Gehem will establish a new production hub in the northern Kutei Basin, creating additional tie back opportunities for future discoveries.

Both projects will form part of the assets Eni intends to contribute to the ongoing business combination with Petronas, aimed at creating a new company that is expected to produce more than 500 kboepd by 2029.

(ID:50792450)