[Indonesia] Significant Discovery in Geng North-1 Exploration Well

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Eni announces a significant gas discovery in the Kutei Basin in Indonesia

San Donato Milanese (Milan), 2 October 2023 – Eni announces a significant gas discovery from the Geng North-1 exploration well drilled in North Ganal PSC, about 85 km off the coast of East Kalimantan in Indonesia. Preliminary estimates indicate a total structure discovered volume of 5 trillion cubic feet (Tcf) of gas in place with a content of condensate estimated up to 400 Mbbls; the acquired data will allow to study the options for a fast-track development.

Geng North-1 was drilled to a depth of 5,025 meters in 1,947 meters water depth, encountered a gas column about 50m thick in a Miocene sandstone reservoir with excellent petrophysical properties that has been subject of an extensive data acquisition campaign. A well production test (DST) has been successfully 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 mmscfd and about 5-6 kbbld of condensate.

The discovery confirms the effectiveness of Eni’s strategy aimed at creating value through its deep knowledge of geological plays and the application of advanced geophysical technologies. The ongoing exploration campaign, along with the recent acquisitions, is in line with Eni’s energy transition strategy to progressively shift its portfolio mix towards gas and LNG, targeting 60% in 2030, and to increase its LNG equity portfolio. Indonesia, and South-East Asia in general, play a relevant role in this strategy.

Thanks to its location and significant size, the discovery has the potential to contribute substantially to the creation of a new production hub, in the Northern part of the Kutei Basin, to be connected to the Bontang LNG facilities on the coast of East Kalimantan, further exploiting its available ullage capacity. It is estimated that, in addition to Geng North, more than 5 Tcf of gas in place are present in undeveloped discoveries within the area of interest, while a significant multi-Tcf exploration potential is under maturation through the ongoing studies.

The Geng North discovery is adjacent to the Indonesia Deepwater Development (IDD) area that includes several stranded discoveries located within the Rapak and Ganal PSC blocks, for which Eni recently announced the acquisition of Chevron interests, increasing its participating interest and acquiring the operatorship. Significant synergies between the two areas are envisaged in terms of gas development options. The acquisition also provides the opportunity to fast track the development of the Gendalo and Gandang gas project (around 2 Tcf of gas reserves) through Eni’s operated Jangkrik facilities.

The Geng North discovery comes shortly after the announcement of Eni’s agreement to acquire Neptune Energy, whose completion will allow to further strengthen Eni’s position in the North Ganal Block.

Eni North Ganal Limited, holding 50.22% participating interest, operate 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.

Eni has been operating in Indonesia since 2001 and currently has a large portfolio of assets in exploration, development, and production phases with a current equity production of approximately 80,000 barrels of oil equivalent per day from the Jangkrik and Merakes fields in East Kalimantan.

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Eni announces the approval of two Plans of Development and licences extension granted by the Indonesian Authorities

San Donato Milanese (Milan), 23 August 2024 – Eni announces that the Indonesian authorities have approved the Plan of Development (POD) of the Geng North (North Ganal PSC) and Gehem (Rapak PSC) fields. The integrated development of the two fields will create a new production hub, called Northern Hub, in the Kutei Basin. The Indonesian authorities have also approved the POD for Gendalo&Gandang fields (Ganal PSC). Additionally, Eni has been awarded by the Indonesian authorities a 20-year extension of the IDD licences named Ganal and Rapak.

Eni is therefore set to establish a significant gas and condensates production of approximately 2 bcf/d of gas and 80,000 bopd of condensates in the East Kalimantan region, both for domestic and international market, leveraging synergies with existing facilities in the area, such as the Bontang LNG Plant and the Jangkrik Floating Production Unit (FPU).

The Northern Hub POD envisages the development of the 5 TCF gas and 400 million barrels of condensates of the Geng North discovery announced by Eni in October 2023, along with the 1.6 TCF of the nearby Gehem discovery via subsea wells, flowlines and a new built FPSO with a handling capacity of about 1 BCFD gas and 80,000 barrels of condensates per day and a storage capacity of 1 Million barrels. Gas will be treated onboard the FPSO and then piped to the onshore receiving facilities at Santan Terminal and to the East Kalimantan pipeline network; it will be partly liquefied at the Bontang LNG facility and partly piped for domestic market. The condensates production will be stabilized and stored onboard the FPSO, and then evacuated via shuttle tankers.

The approved Gendalo & Gandang POD envisages the development of the cumulative 2 TCF gas reserves in the Ganal PSC via subsea wells tied back to the Jangkrik FPU. The development of Gendaloi & Gendang will allow to extend Jangkrik’s gas production plateau, which nears 750 mmscf/d, by at least 15 years.

These new developments, along with the ongoing development of East Merakes and Maha fields, result from the close strategic partnership between Eni and SKK Migas, and will drive a major positive impact on local content while also increasing the utilisation of the available capacity at Bontang LNG plant, in addition to ensuring gas for domestic consumption.

Eni is also planning to conduct a drilling campaign in the next 4-5 years to assess the significant near-field exploration potential within the Eni-operated blocks in the Kutei Basin, amounting to over 30 TCF of gas and largely de-risked following the Geng North discovery.

The CEO of Eni Claudio Descalzi said: “The approval of the Northern Hub and Gendalo&Gandang Plans of Development by the Indonesian Authorities marks a crucial milestone towards the FID of both gas projects, in line with our decarbonization and energy security strategy. The establishment of a new production hub in the Kutei Basin represents a game changer for Eni in Indonesia. This is the result of a consistent strategy that combines our distinctive exploration skills with the acquisition of IDD and Neptune assets. This grants us today a strong leadership in a world-class basin, close to existing facilities and to very important markets. The strategic partnership with the Indonesian authorities has been pivotal to reaching these key milestones only a few months after the Geng North discovery and the completion of the IDD and Neptune acquisition processes”.

Eni holds a 83,3% participating interest and operates the North Ganal Block – Geng North field, with Agra Energi Pte Ltd as partner holding the remaining 16.7%. Eni also holds 82% Participating Interest and operates the Ganal and Rapak Blocks, with Tip Top as a partner holding the remaining 18%.

Eni has been operating in Indonesia since 2001 and currently has a large portfolio of assets in exploration, development, and production phases with a current equity production of approximately 95,000 boe/d in East Kalimantan.