Eni has reached final investment decisions (FIDs) for two massive deep-water hubs offshore East Kalimantan, advancing projects that will unlock significant volume.
The move, sanctioned just 18 months after initial development approvals, confirms a rapid development schedule for the North Hub (Geng North and Gehem fields) and the South Hub (Gendalo and Gandang fields).
The integrated projects are set to transform the region into a global gas powerhouse, with production expected to start in 2028. The combined projects tap into a resource base of nearly 10 trillion cubic feet (Tcf) of gas and 550 million barrels of condensate.
By 2029, Eni expects to reach a production plateau of two billion standard cubic feet per day (bscfd) of gas and 90,000 barrels of condensate per day. To achieve this, the South Hub will see seven producing wells tied back to the existing Jangkrik Floating Production Unit (FPU).
Meanwhile, the North Hub will involve 16 wells at extreme depths, up to 2,000 metres, linked to a newly built FPSO vessel with a 1.4-million-barrel storage capacity. The gas will feed both Indonesia’s domestic pipeline network and the Bontang LNG plant, where Eni plans to reactivate an idle liquefaction train to handle the surge in supply.
This strategy is designed to satisfy domestic energy needs while providing a significant boost to international LNG exports. Eni’s fast-track model relies heavily on synergies, leveraging existing infrastructure to reduce costs and accelerate the time-to-market.
The projects will also be part of a planned business combination with Petronas, creating a powerhouse entity forecast to produce over 500,000 barrels of oil equivalent per day by 2029.
These projects reaffirm Eni’s long-term commitment to Indonesia’s growing offshore gas sector, enhancing gas supply while establishing a new production hub in the northern Kutei Basin, paving the way for future discoveries in the region.
