Eni was awarded the operatorship of the block with a 40% interest, while its partners Pertamina and Neptune will each hold a 30% stake.
West Ganal is a new Gross Split Production Sharing Contract (PSC) encompassing an area of 1,129km². It is located adjacent to the Eni-operated Muara Bakau and East Sepinggan PSCs, situated in the Makassar Strait, offshore East Kalimantan.
The latest block hosts the Maha discovery which is estimated to contain gas resources of more than 600 billion of standard cubic feet of gas (Bscf) with further upside potentiality. Once developed, the West Ganal block will increase gas supplies to the domestic Indonesian market as well as support exports.
The addition of the new block bolsters Eni’s footprint in the East Kalimantan’s Kutei Basin. It will also support the company’s ‘near field’ strategy to develop new resources utilising existing infrastructures in nearby resources.
In May 2017, Eni started production from the Jangkik deepwater field in the Muara Bakau PSC. Last year, the company’s Plan of Development for the Merakes discovery located in East Sepinggan PSC was approved. Overall, Indonesia’s Ministry of Energy and Mineral Resources auctioned four blocks in the second conventional oil and gas bidding round in 2019.
The other three blocks will be re-auctioned in the next bidding round, reported Reuters.