Eni sanctions two deepwater hub projects offshore Indonesia

Eni has taken FID on two new deepwater gas-condensate hub developments offshore East Kalimantan, Indonesia.

The decision to proceed with the Gendalo and Gandang gas project (South Hub) and the Geng North and Gehem fields (North Hub) project followed approval of the projects of development in 2024. 

For Gendalo and Gandang (South Hub), in water depths ranging from 1,000 m to 1,800 m, Eni plans to drill seven producer wells and to install deepwater subsea production systems tied back to its Jangkrik FPU.

As for Geng North and Gehem (North Hub), plans call for 16 production wells in water depths between 1,700 m and 2,000 m, and installation of subsea systems linked to a newbuild FPSO. The latter will be designed to process more than 1 Bcf/d of gas and 90,000 bbl/d of condensate, with storage for up to 1.4 Mbbl.

Eni estimates combined volumes in place for the four fields at close to 10 Tcf of gas and 550 MMbbl of associated condensate, and it expects to start up both projects in 2028, with a production plateau of 2 Bcf/d and 90,000 bbl/d in 2029. 

Processed gas will be transported onshore through a subsea pipeline to a reception facility connecting to both the domestic pipeline network and the Bontang LNG plant, with the produced LNG allocated to domestic and international markets.

Condensate will be processed and stored offshore in the North Hub FPSO for offloading to a shuttle tanker.

Eni’s development plan also covers extending the operating life of the Bontang LNG plant by reactivating one currently idle liquefaction train (Train F). It also expects the new North Hub to host additional tiebacks from future discoveries in the offshore northern Kutei Basin.

Both new developments will be managed under the company’s planned Indonesian business combination with Petronas, with their new joint venture expected to produce more than 500,000 boe/d by 2029.