Italian oil and gas company Eni has unveiled a new development strategy aimed at enhancing Indonesia’s gas production capabilities.
The plan was presented by Eni CEO Claudio Descalzi during a meeting with Indonesia’s President Joko Widodo.
As part of the plan, Eni plans to establish a new gas production hub in the North Ganal PSC offshore East Kalimantan with a production capacity of one billion cubic feet per day of gas.
Last year, Eni made a significant gas discovery at the Geng North-1 exploration well, with preliminary estimates indicating a total volume of five trillion cubic feet of gas.
Eni also aims to maintain an output of 750 million standard cubic feet per day of gas from its existing facilities in the southern offshore Kutei Basin.
The ongoing development of the East Merakes and Maha fields, along with near-field exploration, supports this output extension.
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Descalzi also shared Eni’s future proposals for the Indonesia Deepwater Development assets recently acquired from Chevron.
These projects are expected to have a positive impact on the local economy and will increase the utilisation of the Bontang liquified natural gas plant’s capacity, in addition to meeting domestic gas consumption needs.
A memorandum of understanding (MOU) was also signed between the Ministry of Energy and Mineral Resources of the Republic of Indonesia and Eni.
This MOU focuses on cooperation in energy transition and decarbonisation.
It will enable Eni to explore the production of agri-feedstock for its Enilive biorefineries, primarily from agro-industrial and forestry residues.
Moreover, Eni will also assess opportunities in carbon capture utilisation and storage (CCUS) and energy efficiency to reduce greenhouse gas emissions from upstream operations and sectors that are difficult to decarbonise.
Lastly, Eni is evaluating nature and technology-based projects, including initiatives for clean cooking, to offset residual emissions.
Last week, Eni and Var Energy completed the acquisition of Neptune Energy.