Eni Makes Significant Gas Discovery in Indonesia

Italian energy major Eni SPA has made a major discovery off the coast of East Kalimantan in Indonesia.

The company said in a media release that the Geng North-1 exploration well drilled under North Ganal PSC encountered a gas column about 50 meters (164 feet). Preliminary estimates indicate a total structure discovered volume of five trillion cubic feet (Tcf) of gas in place with a content of condensate estimated up to 400 million barrels.

The company added that the acquired data will allow the study of options for a fast-tracked development.

Geng North-1 was drilled to a depth of 5,025 meters (16,486 feet) with 1,947 meters (6,388 feet) of water depth. The gas column was encountered in a Miocene sandstone reservoir with excellent petrophysical properties that has been subject to an extensive data acquisition campaign, Eni said.

A well production test (DST) has been performed for a full assessment of the gas discovery and although limited by the test facilities, it has allowed to estimate a well capacity of up to 80-100 million standard cubic feet per day and about 5,000-6,000 barrels of condensate per day, Eni said.

The company added that the ongoing exploration campaign, along with recent acquisitions, is in line with its energy transition strategy to progressively shift its portfolio mix toward gas and liquefied natural gas (LNG), targeting 60 percent in 2030. Eni said Indonesia and Southeast Asia play a relevant role in this strategy.

The discovery's location and size have the potential to create a new production hub in the Northern part of the Kutei Basin, connected to the Bontang LNG facilities in East Kalimantan, Eni said. Additional undeveloped discoveries within the area of interest hold more than five Tcf of gas in place, with ongoing studies revealing significant exploration potential. The Geng North discovery is adjacent to the Indonesia Deepwater Development (IDD) area, for which Eni recently acquired interests from Chevron Corp., leading to synergies for gas development options, Eni said. This acquisition also enables the accelerated development of the Gendalo and Gandang gas project (around two Tcf of gas reserves) through Eni's Jangkrik facilities, according to the company.

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