The Northern Hub is anticipated to be key for Eni’s operations. Credit: Massimo Todaro/Shutterstock.

Italian energy company Eni has secured approvals and licence extensions from Indonesian authorities, paving the way for the development of gas and condensates production.  

The Indonesian authorities have given the green light to Eni for the plan of development (POD) of the Geng North and Gehem fields, which are set to form a new production hub, termed the Northern Hub, in the Kutei Basin.  

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The authorities have also sanctioned the POD for the Gendalo and Gandang fields within the Ganal PSC.  

Furthermore, Eni has been granted a 20-year extension of the licences for the Ganal and Rapak blocks. 

The Northern Hub is anticipated to be key for Eni’s operations, with the development of the 5 trillion cubic feet (tcf) of gas and 400 million barrels of condensates from the Geng North discovery, announced in October 2023.  

The Gehem discovery, in close proximity, will contribute an additional 1.6tcf of gas.  

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The planned facilities include subsea wells, flowlines, and a new built floating production storage and offloading (FPSO) unit with a capacity of about one billion cubic feet per day (bcf/d) of gas and 80,000 barrels of condensates per day, along with a storage capacity of one million barrels. 

The gas from these developments will be processed on the FPSO, then transported to the onshore Santan Terminal and integrated into the East Kalimantan pipeline network.  

A portion of the gas will be liquefied at the Bontang LNG plant, while the rest will be supplied to the domestic market.  

Condensates production will be stabilised on the FPSO and offloaded to shuttle tankers for evacuation. 

The approved development plan for the Gendalo and Gandang fields is set to utilise subsea wells tied back to the Jangkrik floating production unit, extending its gas production plateau, currently near 750 million standard cubic feet per day (mmscf/d), by at least 15 years. 

Eni CEO Claudio Descalzi said: “The approval of the Northern Hub and Gendalo&Gandang Plans of Development by the Indonesian Authorities marks a crucial milestone towards the FID of both gas projects, in line with our decarbonization and energy security strategy.” 

In addition to these developments, Eni plans to embark on a drilling campaign over the next four to five years.  

The aim is to evaluate the considerable exploration potential within the Eni-operated blocks in the Kutei Basin, which is estimated to hold over 30tcf of gas. This potential has been largely de-risked following the Geng North discovery.