Eni approves major deepwater gas projects offshore E. Kalimantan
Wednesday, March 18 2026 - 02:45 PM WIB
By Romel S. Gurky
Italian oil, gas giant Eni SpA announced on Wednesday that it has approved final investment decisions for two major deepwater gas developments offshore East Kalimantan, advancing projects expected to deliver significant gas supplies by the end of the decade.
The company said it has sanctioned the Gendalo and Gandang fields (South Hub) and the Geng North and Gehem fields (North Hub), marking a key step in expanding its gas portfolio in the Kutei Basin.
The combined projects are expected to produce up to 2 billion standard cubic feet per day (bscfd) of gas and 90,000 barrels per day of condensate at peak output, with start up targeted for 2028 and plateau production in 2029.
The developments will leverage existing infrastructure, including the Jangkrik floating production unit and the Bontang LNG plant, to reduce costs and accelerate delivery.
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The South Hub will involve drilling seven wells in water depths of 1,000 to 1,800 meters, tied back to the Jangkrik facility, while the North Hub includes 16 wells and a new floating production, storage and offloading (FPSO) unit with processing capacity exceeding 1 bscfd of gas.
The projects hold an estimated 10 trillion cubic feet of gas in place and around 550 million barrels of condensate, Eni said.
Gas from the fields will be transported to onshore facilities supplying both domestic pipelines and LNG exports, while condensate will be stored offshore and shipped via tankers.
The development plan also includes reactivating an idle liquefaction train at the Bontang LNG plant to extend its operating life.
The projects will be part of assets Eni plans to include in its planned business combination with Petronas, aimed at creating a new company with production exceeding 500,000 barrels of oil equivalent per day by 2029.
Eni has operated in the country since 2001 and is a key gas producer, particularly in deepwater areas of the Makassar Strait.
Editing by Alexander Ginting