Eni launches production at Indonesian gas field

The field is in the East Sepinggan block, operated by Eni with a 85 percent stake, and will contribute up to 100 mmscfd of gas or about 18,000 boepd to Eni’s production, according to Eni.

Merakes East is located in a water depth of 1,600 meters, about 10 km east of the Merakes field.

It is tied back via a subsea connection to the Jangkrik FPU, operated by Eni, situated around 50 km away.

Eni said this startup is another example of fast-track development, as the field was brought on production some two years from FID.

After the initial processing onboard the FPU, the gas will be transferred via pipe network to supply the internal market and the Bontang liquefaction plant, which supplies LNG for both the internal market and for export.

The start-up of Merakes East is another important step of Eni’s broader strategy to valorize the considerable gas resources held in Indonesia’s prolific Kutei Basin.

Over the last few years, following significant exploration successes and acquisitions, Eni has positioned itself as the main operator of the Kutei basin and one of the key players in Indonesia’s gas market.

The company expects to produce up to 2 Bcfd of gas and 90,000 bopd of condensate with the start up of the North Hub and the Gendalo-Gandang fields.

Eni has recently announced talks with Malaysia’s Petronas to establish a joint venture holding company to oversee selected upstream assets in Indonesia and Malaysia.

This joint venture is expected to generate substantial synergies towards becoming a “major” LNG player in the region and will combine approximately 3 billion barrels of oil equivalent (boe) of reserves with an additional 10 billion boe of potential exploration upside.