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Home » Eni Approves Indonesia Projects Set to Deliver 2 Bcfd of Gas
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Eni Approves Indonesia Projects Set to Deliver 2 Bcfd of Gas

omc_adminBy omc_adminMarch 18, 2026No Comments5 Mins Read
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Eni SpA has made final investment decisions to proceed with the Gendalo and Gandang gas project (South Hub) and Geng North and Gehem fields (North Hub) offshore Indonesia.

Expected to go online 2028, the projects are designed to add up to 2 billion cubic feet a day (Bcfd) of natural gas and 90,000 barrels per day of condensate to the Italian state-backed company’s production capacity, it said in a press release Wednesday. Eni expects to reach peak production at the new projects in 2029.

The projects are among assets Eni agreed last year to contribute to its pending joint venture with Malaysia’s Petroliam Nasional Bhd (Petronas).

“The Gendalo and Gandang development plan, in water depths ranging from 1,000-1,800 meters [3,280.84-5,905.51 feet], includes the drilling of seven producing wells and the installation of deepwater subsea production systems tied back to Jangkrik FPU [floating production unit]”, Eni said Wednesday.

“For the North Hub, the project foresees the drilling of 16 producing wells at water depths between 1,700 and 2,000 meters, and the installation of subsea systems linked to a newly built FPSO [floating production, storage and offloading vessel] capable of processing over 1 bscfd [billion standard cubic feet per day] of gas and 90,000 bpd of condensate, with a storage capacity of 1.4 million barrels.

“The combined volumes in place for the two projects amount to nearly 10 Tcf [trillion cubic feet] of gas initially in place, with 550 million barrels of associated condensate”.

The gas will be transported via pipeline to a receiving facility feeding an existing pipeline network and the Bontang liquefaction plant. The liquefied natural gas (LNG) produced will be delivered to both the domestic and overseas markets. The condensate will be processed and stored offshore in the FPSO for export via a shuttle tanker, according to Eni.

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“The development plan also includes extending the operating life of the Bontang LNG plant by reactivating one of its currently idle liquefaction trains (Train F)”, it added.

“These projects reaffirm Eni’s long‑term commitment to Indonesia’s growing offshore gas sector, enhancing gas supply while maximizing synergies with existing infrastructure in East Kalimantan and the involvement of significant local content.

“In particular, the development of Geng North and Gehem will establish a new production hub in the northern Kutei Basin, creating additional tie-back opportunities for future discoveries”.

Authorities in the Southeast Asian country approved Eni’s development plans for the projects in 2024. Eni at the time also secured a 20-year extension to the Indonesia Deepwater Development gas project, which consists of the Ganal and Rapak blocks, as announced by the company August 23, 2024.

Eni discovered Geng North about three years ago under the North Ganal production sharing contract (PSC), as announced by the company October 2, 2023. Gehem meanwhile came under Eni when it acquired Chevron Corp’s operating stake in the Rapak PSC, as well as the Ganal and Makassar Straits PSCs, in 2023.

The Ganal, North Ganal, Makassar Straits and Rapak blocks sit in the Kutei Basin off the coast of East Kalimantan province. The province is on the Indonesian side of Borneo, an island shared with Brunei and Malaysia.

Last year Eni and Petronas signed an agreement to combine their assets in Indonesia and Malaysia into a company equally owned by the state-controlled oil and gas producers.

The independent company, to be called NewCo, will focus on gas-producing and development assets including in Indonesia’s Kutei Basin, Eni said in an online statement November 3, 2025. The combination would create a “major” LNG player in the Asian market, Eni and Petronas said in the prior memorandum of understanding they announced February 27, 2025.

Currently Eni has an annual production of 35 million barrels of oil equivalent including 183 Bcf of gas in Indonesia, it says on its website.

To contact the author, email jov.onsat@rigzone.com

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