Eni Hits Gas Pay Offshore Indonesia

Eni announced Thursday that it has successfully drilled the Jangkrik 3 well, located in the Muara Bakau permit area in the offshore Borneo of Indonesia. The three wells drilled to date confirm the Jangkrik field as an important gas discovery hosting a volume of gas in place of more than 1.4 Trilion cubic feet (about 250 million barrels oil equivalent).

Jangkrik 3, drilled some 70 Km off the Eastern Borneo coast at a water depth of 416 meters, has reached a total depth of 2,849 meters encountering more than 60 meters net gas pay in excellent quality reservoir sands of Pliocene age. Further exploration activities are planned in 2011 in nearby areas.

Eni, through its Indonesian affiliate, is operator of the Muara Bakau permit with 55% share, with partner GDF SUEZ holding the remaining 45%. The Joint Venture has already begun studies for the fast track development of the discovered gas which will be routed to the nearby Bontang LNG plant, where Eni owns spare processing capacity.

Eni has been present in Indonesia since 2001 and holds working interests in twelve permits and operates six of them. The offshore activities are located in the Tarakan and Kutei Basins, offshore Kalimantan, north of Sumatra and West Timor. In the Kutei Basin, Eni is also participating in the development of the significant gas reserves located in the Ganal and Rapak blocks.

Other activities are located in the Mahakam River Delta, East Kalimantan. Eni has an equity production of approximately 20,000 boed in this area and has recently been awarded an interest in Sanga Sanga CBM, a new coal-bed methane production sharing contract (PSC), through its operated joint venture affiliate VICO CBM Limited (Eni 50%, BP 50%). If successful, the coal-bed methane coming from Sanga Sanga would be liquefied at the Bontang plant, representing the first LNG facility to be supplied with CBM.