Eni's Significant Gas Discovery in Kutei Basin Offshore Indonesia Paves the Way for a New Production Hub
Posted 02/10/2023 11:16
Italian oil and gas giant Eni has made a significant gas discovery in the Kutei Basin offshore Indonesia, which could potentially lead to the creation of a new production hub in the northern part of the basin. Eni believes that this discovery could be tied to the Bontang LNG facilities on the coast of East Kalimantan, further optimizing its ullage capacity.
The gas discovery was made in the Geng North-1 exploration well drilled in North Ganal PSC, approximately 85 km off the coast of East Kalimantan. Preliminary estimates suggest a total volume of 5 trillion cubic feet (tcf) of gas in place with up to 400 Mbbls of condensate. Eni plans to explore fast-track development options based on the acquired data.
The Geng North-1 well, drilled to a depth of 5,025 meters in 1,947 meters of water, encountered a 50-meter-thick gas column in a Miocene sandstone reservoir with excellent petrophysical properties. A production test estimated a well capacity of up to 80-100 million standard cubic feet per day (mmscfd) and 5-6 thousand barrels per day (kbbld) of condensate.
Eni North Ganal Limited, holding a 50.22% participating interest, operates the block, with Neptune Energy North Ganal BV and Agra Energi I Pte Ltd as partners, holding the remaining 38.04% and 11.74%, respectively.
The discovery aligns with Eni's strategy to shift its portfolio mix toward gas and LNG, aiming for 60% in 2030, and to expand its LNG equity portfolio. Indonesia and Southeast Asia are integral to this strategy.
The Geng North discovery is adjacent to the Indonesia Deepwater Development (IDD) area, including several stranded discoveries. Eni recently acquired Chevron's interests in these assets, increasing its participating interest and acquiring operatorship. Synergies between the two areas in gas development options are anticipated.
Eni's acquisition of Neptune Energy will further strengthen its position in the North Ganal Block, solidifying its presence in Indonesia.
Eni has been actively bringing new projects online, demonstrating its commitment to expanding its energy portfolio.