Eni plans to send new Indonesian gas supplies to Bontang LNG plant

Italian energy firm Eni is planning to send its newly discovered gas supplies offshore Indonesia to Pertamina’s Bontang LNG facility in East Kalimantan.

Eni announced on Monday a “significant” gas discovery from the Geng North-1 exploration well drilled in North Ganal PSC, about 85 km off the coast of East Kalimantan in Indonesia.

Preliminary estimates indicate a total structure discovered volume of 5 trillion cubic feet (Tcf) of gas in place with a content of condensate estimated up to 400 Mbbls; the acquired data will allow to study the options for a fast-track development, the firm said.

Eni has drilled Geng North-1 to a depth of 5,025 meters in 1,947 meters water depth, and encountered a gas column about 50m thick in a Miocene sandstone reservoir.

The company has completed a well production test (DST) for a full assessment of the gas discovery and although limited by the test facilities, it has allowed to estimate a well capacity of up to 80-100 mmscfd and about 5-6 kbbld of condensate, it said.

Boosting LNG portfolio

The ongoing exploration campaign, along with the recent acquisitions, is in line with Eni’s energy transition strategy to progressively shift its portfolio mix towards gas and LNG, targeting 60 percent in 2030, and to increase its LNG equity portfolio, Eni said.

Moreover, thanks to its location and significant size, the discovery has the potential to contribute “substantially” to the creation of a new production hub, in the Northern part of the Kutei Basin, to be connected to the Bontang LNG facilities on the coast of East Kalimantan, further exploiting its available ullage capacity, it said.

The Bontang LNG terminal operates for more than 40 years and supplies LNG to both the domestic and export markets.

Synergies

Eni estimates that, in addition to Geng North, more than 5 Tcf of gas in place are present in undeveloped discoveries within the area of interest, while a significant multi-Tcf exploration potential is under maturation through the ongoing studies.

The Geng North discovery is adjacent to the Indonesia Deepwater Development (IDD) area that includes several stranded discoveries located within the Rapak and Ganal PSC blocks, for which Eni recently announced the acquisition of Chevron interests, increasing its participating interest and acquiring the operatorship.

Enii sees “significant synergies” between the two areas in terms of gas development options.

Also, the acquisition also provides the opportunity to fast track the development of the Gendalo and Gandang gas project (around 2 Tcf of gas reserves) through Eni’s operated Jangkrik facilities.

The Geng North discovery comes shortly after the announcement of Eni’s agreement to acquire Neptune Energy, whose completion will allow to further strengthen Eni’s position in the North Ganal Block, it said.

Eni North Ganal Limited, holding 50.22 percent participating interest, operate the block, with Neptune Energy North Ganal and Agra Energi I as partners, holding the remaining 38.04 percent and 11.74 percent, respectively.

The Italian firm has been operating in Indonesia since 2001 and currently has a large portfolio of assets in exploration, development, and production phases with a current equity production of about 80,000 barrels of oil equivalent per day from the Jangkrik and Merakes fields in East Kalimantan.

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