Eni to Create New Gas Hub in Indonesia After Receiving Approvals

By Christian Moess Laursen

Eni is set to establish a new production hub in Indonesia after the Italian energy major received approvals from authorities to develop two gas fields, significantly bolstering its South East Asian position.

The oil-and-gas producer, one of Europe's largest, said Friday that the approval means it is set to produce around 2 billion cubic feet of gas a day and 80,000 barrels of oil condensates a day in the East Kalimantan region, given proximity and synergies with existing fields nearby.

The two fields, Geng North and Gehem, will be integrated into a new hub called Northern Hub. It is forecast to develop 6.6 trillion cubic feet of gas from the two gas fields, with production set for both domestic and international markets, Eni said.

It plans to conduct a drilling campaign over the next 4-5 years to asses the near-field exploration potential within Kutei Basin, where the fields are located.

The Milan-based company said it also received approval for developing the Gendalo and Gandang fields, set to develop 2 trillion cubic feet of gas.

"The establishment of a new production hub in the Kutei Basin represents a game changer for Eni in Indonesia," Chief Executive Claudio Descalzi said.

Write to Christian Moess Laursen at christian.moess@wsj.com

(END) Dow Jones Newswires

August 23, 2024 05:40 ET (09:40 GMT)

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