Eni has commenced gas production from its Merakes East field in the Kutei Basin, offshore Indonesia. The project, located in the East Sepinggan block (85% Eni-operated), is set to deliver up to 100 million standard cubic feet per day (MMSCFD) of natural gas, equivalent to approximately 18,000 barrels of oil equivalent per day (boepd).
Strategic Context and Infrastructure
Merakes East is situated 10 km east of the existing Merakes Field in a water depth of 1,600 meters. It is connected via a subsea link to the Jangkrik Floating Production Unit (FPU), located 50 km from the site. Following initial processing at the FPU, the gas is transferred to the Bontang liquefaction plant for both domestic consumption and export.
The project exemplifies Eni’s efficiency in fast-tracking development, achieving production just two years post-Final Investment Decision (FID). This launch is a pivotal part of Eni’s broader strategy to harness Indonesia’s rich gas reserves, particularly in the prolific Kutei Basin.
Regional Expansion and Future Plans
The start-up of Merakes East aligns with ongoing projects like the Maha field development and newly approved Plans of Development (PoD) for the Northern Hub and Gendalo-Gendang projects. These initiatives reflect Eni’s deepening involvement in Indonesia’s upstream sector in collaboration with SKK Migas, the nation’s Upstream Regulator. This expansion is designed to boost domestic gas supply while optimizing the Bontang LNG plant’s capacity.
Eni, now a leading operator in the Kutei Basin, anticipates significant production increases with the North Hub and Gendalo-Gendang fields coming online. Forecasts indicate up to 2 billion cubic feet per day (BCFD) of gas and 90,000 barrels per day (bpd) of condensate.
Strategic Joint Venture with PETRONAS
Further amplifying its presence, Eni recently entered negotiations with PETRONAS to create a joint venture overseeing upstream assets in Indonesia and Malaysia. This strategic partnership aims to consolidate 3 billion barrels of oil equivalent (boe) of reserves with a potential 10 billion boe in exploration upside, propelling both companies toward a dominant LNG stance in Southeast Asia.
Source: By Oilprice.com