WoodMac Says Eni Find Reinforces Kutei as One of Hottest Plays

Eni’s latest discovery in Indonesia reinforces the Kutei Basin’s reputation as one of the hottest global exploration plays of recent years.

That’s what Andrew Harwood, Wood Mackenzie (WoodMac) Vice President, Corporate Research, said in a statement sent to Rigzone, adding that the find “will add to Indonesia’s gas resources when the country increasingly focuses on gas availability”.

“It provides options for Indonesia as the nation balances domestic demand needs with future export opportunities,” Harwood said.

Harwood noted that the Konta-1 discovery “adds momentum to Eni’s existing plans to invest in and develop new gas sources for the currently underutilized Bontang LNG plant”.

“The Konta-1 discovery lies in the northern Muara Bakau area, close to Eni’s pre-FID Kutei North Hub. It provides future tie-back upside and offers Plan B for Eni if the un-appraised Geng North underperforms initial expectations,” he added.

Harwood also said Eni’s latest find encourages the company’s ongoing exploration campaign, which he pointed out runs into 2026.

“Wood Mackenzie’s pick of prospects in line for drilling is Geliga, which holds multi trillion cubic foot potential,” he stated.

Harwood went on to note that 2026 “looks exciting for Eni’s Indonesian portfolio with several major milestones ahead”.

“These include exploration campaign results, a final investment decision on the Northern hub development, and the launch of ‘NewCo’ – the strategic satellite venture between Eni and Petronas,” he highlighted.

In a statement sent to Rigzone recently, Eni announced a “significant gas discovery” in the Konta-1 exploration well off the coast of East Kalimantan in Indonesia.

“Estimates indicate 600 billion cubic feet of gas initially in place (GIIP) with a potential upside beyond one trillion cubic feet,” Eni said in the statement.

“Konta-1 was drilled to a depth of 4,575 meters [15,009 feet] in 570 meters [1,870 feet] water depth, encountering gas in four separate sandstone reservoirs of Miocene age with good petrophysical properties that have been subject to an extensive data acquisition campaign,” Eni said in the statement.

In a report sent to Rigzone back in September by Natasha Kaneva, Head of Global Commodities Strategy at J.P. Morgan, analysts at the company, including Kaneva, said “Indonesia’s deepwater production remains negligible today” but added that the country “is on the cusp of a major transformation”.

“Significant discoveries and revived development plans are setting the stage for a new wave of offshore growth, centered around the Kutei Basin in East Kalimantan,” the analysts stated in the report.

“A key turning point came in July 2023, when Eni acquired Neptune Energy’s international portfolio, including its stakes in Indonesia and the North Ganal PSC,” the J.P. Morgan analysts pointed out.

“Just a few months later, in October 2023, Eni announced a major discovery at the Geng North-1 exploration well, which encountered approximately five trillion cubic feet of gas and 400 million barrels of condensate in high-quality Miocene sandstone,” they said.

“In response to the scale and quality of the resource, Eni fast-tracked development, securing Plan of Development (POD) approval by August 2024. A final investment decision is expected by the end of 2025, with first production anticipated in late 2028,” they continued.

The J.P. Morgan analysts stated in that report that, “since Geng North is a gas-condensate field, liquids output will primarily come from condensate, contributing around 35,000 barrels per day”.

They added that, “in parallel, the Gendalo, Gehem, and Gandang fields – also located in the Kutei Basin – have gained renewed momentum”.

“Their joint POD was approved on the same day as Geng North’s, and they form part of the larger Northern Hub development concept,” they said.

“Under current plans, Gendalo and Gandang will be tied back to the existing Jangkrik floating production unit (FPU), while the Gehem field will be developed via the new Geng North FPSO,” they noted.

The J.P. Morgan analysts went on to state that, together, the Gendalo and Gehem projects “could add another 20,000 barrels per day of condensate, pushing total Indonesian deepwater liquids production past 50,000 barrels per day by 2030”.

“While modest in global terms, this would mark a dramatic shift for Indonesia’s deepwater sector and establish a new foundation for sustained offshore growth. The success of these projects will also broaden deepwater development potential across Southeast Asia,” the analysts added.

To contact the author, email andreas.exarheas@rigzone.com