These approvals pave the way for the establishment of a new production hub, known as the Northern Hub, in the Kutei Basin
Staff Writer 26th Aug 2024
Indonesian authorities approve Eni’s POD for Geng North and Gehem gas projects. (Credit: QR9iudjz0 on Freeimages.com)
Eni has received approval from Indonesian authorities for the plan of development (POD) for its Geng North (North Ganal PSC) and Gehem (Rapak PSC) fields, as well as the Gendalo and Gandang fields (Ganal PSC).
These approvals pave the way for the establishment of a new production hub, known as the Northern Hub, in the Kutei Basin. Additionally, Eni has been granted a 20-year extension for the Indonesia deepwater development (IDD) licences covering the Ganal and Rapak blocks.
With these approvals, Eni is set to significantly enhance its production capabilities in the East Kalimantan region, targeting approximately two billion cubic feet per day (bcf/d) of gas and 80,000 barrels per day (bopd) of condensates.
This production will supply both domestic and international markets, leveraging existing infrastructure in the region, including the Bontang LNG plant and the Jangkrik floating production unit (FPU).
Eni CEO Claudio Descalzi said: “The approval of the Northern Hub and Gendalo & Gandang Plans of Development by the Indonesian authorities marks a crucial milestone towards the final investment decision (FID) for both gas projects, aligning with our decarbonisation and energy security strategy.
“The establishment of a new production hub in the Kutei Basin represents a significant shift for Eni in Indonesia. This outcome is the result of a consistent strategy that combines our exploration expertise with the acquisition of IDD and Neptune assets, providing us with a strong leadership position in a world-class basin, close to existing facilities and major markets.”
The Northern Hub POD includes the development of five trillion cubic feet (TCF) of gas and 400 million barrels of condensates from the Geng North discovery, which Eni announced in October 2023.
The project also involves the development of the 1.6 TCF Gehem discovery through subsea wells, flowlines, and a newly constructed floating production, storage, and offloading (FPSO) unit.
This FPSO will have the capacity to process approximately one billion cubic feet per day (bcf/d) of gas and 80,000 barrels of condensates per day, with storage for one million barrels. Gas processed on the FPSO will be transported via pipelines to onshore facilities at Santan terminal and integrated into the East Kalimantan pipeline network.
Part of the gas will be liquefied at the Bontang LNG facility, with the remainder supplied to the domestic market. The FPSO will also stabilise and store condensates for evacuation via shuttle tankers.
In addition, the approved Gendalo and Gandang POD will develop two TCF of gas reserves in the Ganal PSC using subsea wells connected to the Jangkrik FPU. This development is expected to extend the Jangkrik gas production plateau, currently at approximately 750 million standard cubic feet per day (mmscf/d), by at least 15 years.
These developments result from Eni’s partnership with SKK Migas and are anticipated to have a substantial impact on local content. They will also increase the utilisation of the Bontang LNG plant’s capacity, ensuring a consistent supply of gas for domestic consumption.
Eni plans to undertake a drilling campaign over the next four to five years to explore the near-field potential within its operated blocks in the Kutei Basin. The area is estimated to hold over 30TCF of gas, with risks significantly mitigated following the Geng North discovery.
The Italian oil and gas firm operates the North Ganal Block – Geng North field with an 83.3% participating interest, while Agra Energi holds the remaining 16.7%. In the Ganal and Rapak blocks, Eni holds an 82% participating interest, with Tip Top as a partner holding the remaining 18%.
Last week, Eni closed the previously announced $783m sale of Nigerian Agip Oil Company (NAOC) to Oando, a Nigeria-based energy solutions provider.
Eni has received approval from Indonesian authorities for the plan of development (POD) for its Geng North (North Ganal PSC) and Gehem (Rapak PSC) fields, as well as the Gendalo and Gandang fields (Ganal PSC).
These approvals pave the way for the establishment of a new production hub, known as the Northern Hub, in the Kutei Basin. Additionally, Eni has been granted a 20-year extension for the Indonesia deepwater development (IDD) licences covering the Ganal and Rapak blocks.
With these approvals, Eni is set to significantly enhance its production capabilities in the East Kalimantan region, targeting approximately two billion cubic feet per day (bcf/d) of gas and 80,000 barrels per day (bopd) of condensates.
This production will supply both domestic and international markets, leveraging existing infrastructure in the region, including the Bontang LNG plant and the Jangkrik floating production unit (FPU).
Eni CEO Claudio Descalzi said: “The approval of the Northern Hub and Gendalo & Gandang Plans of Development by the Indonesian authorities marks a crucial milestone towards the final investment decision (FID) for both gas projects, aligning with our decarbonisation and energy security strategy.
“The establishment of a new production hub in the Kutei Basin represents a significant shift for Eni in Indonesia. This outcome is the result of a consistent strategy that combines our exploration expertise with the acquisition of IDD and Neptune assets, providing us with a strong leadership position in a world-class basin, close to existing facilities and major markets.”
The Northern Hub POD includes the development of five trillion cubic feet (TCF) of gas and 400 million barrels of condensates from the Geng North discovery, which Eni announced in October 2023.
The project also involves the development of the 1.6 TCF Gehem discovery through subsea wells, flowlines, and a newly constructed floating production, storage, and offloading (FPSO) unit.
This FPSO will have the capacity to process approximately one billion cubic feet per day (bcf/d) of gas and 80,000 barrels of condensates per day, with storage for one million barrels. Gas processed on the FPSO will be transported via pipelines to onshore facilities at Santan terminal and integrated into the East Kalimantan pipeline network.
Part of the gas will be liquefied at the Bontang LNG facility, with the remainder supplied to the domestic market. The FPSO will also stabilise and store condensates for evacuation via shuttle tankers.
In addition, the approved Gendalo and Gandang POD will develop two TCF of gas reserves in the Ganal PSC using subsea wells connected to the Jangkrik FPU. This development is expected to extend the Jangkrik gas production plateau, currently at approximately 750 million standard cubic feet per day (mmscf/d), by at least 15 years.
These developments result from Eni’s partnership with SKK Migas and are anticipated to have a substantial impact on local content. They will also increase the utilisation of the Bontang LNG plant’s capacity, ensuring a consistent supply of gas for domestic consumption.
Eni plans to undertake a drilling campaign over the next four to five years to explore the near-field potential within its operated blocks in the Kutei Basin. The area is estimated to hold over 30TCF of gas, with risks significantly mitigated following the Geng North discovery.
The Italian oil and gas firm operates the North Ganal Block – Geng North field with an 83.3% participating interest, while Agra Energi holds the remaining 16.7%. In the Ganal and Rapak blocks, Eni holds an 82% participating interest, with Tip Top as a partner holding the remaining 18%.
Last week, Eni closed the previously announced $783m sale of Nigerian Agip Oil Company (NAOC) to Oando, a Nigeria-based energy solutions provider.
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