Eni strikes gold: Massive gas discovery off East Kalimantan coast
Eni, the global energy giant, is celebrating a momentous gas discovery in the waters of East Kalimantan, Indonesia. The Geng North-1 exploration well, situated in the North Ganal PSC about 85 km off the coast, has yielded a staggering preliminary estimate of 5 trillion cubic feet (Tcf) of gas in place, accompanied by up to 400 thousand barrels of condensate. This significant find has the potential to create a new production hub in the Northern part of the Kutei Basin, boosting Eni’s position in the region.
Unlocking Vast Gas Reserves
The Geng North-1 well, drilled to a depth of 5,025 meters in 1,947 meters of water, encountered a gas column approximately 50 meters thick in a Miocene sandstone reservoir, showcasing exceptional petrophysical properties. A successful well production test (DST) has been conducted, indicating a well capacity ranging from 80 to 100 million standard cubic feet per day (mmscfd) and approximately 5,000 to 6,000 barrels per day (kbbld) of condensate.
Strategic Focus on Gas and LNG
This momentous discovery aligns perfectly with Eni’s strategic vision of transitioning towards a greater focus on gas and liquefied natural gas (LNG), with a target of reaching 60% in their portfolio mix by 2030. Indonesia, and Southeast Asia as a whole, holds immense significance in this transformative journey.
A New Production Hub in the Making
The geographical significance of this discovery cannot be overstated. Eni envisions the creation of a new production hub, poised to connect to the Bontang LNG facilities on the coast of East Kalimantan, capitalizing on its available ullage capacity. Moreover, within the area of interest, there are more than 5 Tcf of gas in place in undeveloped discoveries, while ongoing studies are maturing the potential for several multi-Tcf exploration prospects.
Synergies and Accelerated Development
Adjacent to the Indonesia Deepwater Development (IDD) area, the Geng North discovery synergizes with several stranded discoveries within the Rapak and Ganal PSC blocks. Eni’s recent acquisition of Chevron interests in these blocks further enhances its position, enabling accelerated development opportunities, particularly for the Gendalo and Gandang gas project.
A Bright Future Beckons
Eni’s relentless pursuit of excellence and its deep understanding of geological plays have borne fruit with the Geng North discovery. As they continue to expand their footprint and strengthen their portfolio, the future looks promising for this global energy leader. With significant reserves at their disposal, Eni is poised to play a pivotal role in shaping the energy landscape in Southeast Asia and beyond.