Eni, an Italian energy company, revealed on Monday that it has made a significant gas find in Indonesia, extending its presence in the Asian nation, where it has been active since 2001 with various exploration and production assets.
According to the firm, the finding came from the Geng North-1 exploration well located in the North Ganal PSC, some 53 miles (85 kilometers) off the coast of East Kalimantan.
According to preliminary calculations, there has been a total gas discovery of 5 trillion cubic feet (tcf), or 140 billion cubic meters, with a condensate concentration that might reach 400 million barrels.
The continuing exploration effort is by Eni’s (ENI.MI) objective to enhance its LNG equity portfolio and move its portfolio balance towards gas and liquefied natural gas (LNG), with a target of 60% in 2030.
According to Eni, Southeast Asia and Indonesia, in particular, are important to this approach. Its present output in Indonesia is 80,000 barrels of oil equivalent per day.
SKK Migas, the head of Indonesia’s upstream oil and gas regulator, stated that the government hoped Eni’s finding would draw more foreign oil corporations. He also noted that the regulator was working with the company to ensure the discovery could be promptly monetized.
The finding makes it possible to establish a new production center that would be connected to the Bontang LNG facilities on the East Kalimantan coast, according to Eni. The Italian consortium claimed that in addition to Geng North, undeveloped finds in the region of interest contain more than five tcf of in-place gas.
The Indonesia Deepwater Development (IDD) region, which contains multiple finds for which Eni recently announced the acquisition of Chevron’s (CVX.N) holdings, is close to the Geng North finding. Eni stated that the two regions will have significant gas development opportunities.
Eni’s position in the North Ganal region will also be significantly strengthened thanks to the anticipated completion of the company’s acquisition of Neptune Energy.
