Eni to spend $2.9b to develop deepwater gas field

Italian oil, gas giant Eni SpA and partner will spend US$ 2.9 billion to bring its deepwater oil, gas finds off East Kalimantan into production in 2015.

According to the company?s presentation released this week, the company will develop the Jangkrik and Jangkrik North East discoveries in Muara Bakau PSC with peak production set at 80,000 barrels of oil equivalent per day.

The company revealed that the discoveries have recoverable reserves in excess of 400 million barrels of oil equivalent.

Final investment decision for the project is planned to be achieved in 2013.

Eni is the operator of Muara Bakau PSC with 55 percent interest, with the balance held by French firm GDF Suez.

The Joint Venture has already started studies for the fast track development of the discovered gas, that will be routed to the nearby Bontang LNG plant where by Eni owns spare processing capacity, Eni said in December 2010. (alex)