Italian oil and gas giant, ENI, plans to escalate its investment in Indonesia by USD 16 billion or IDR 250 trillion, focusing on enhancing gas production. This announcement followed a meeting between ENI's CEO and President Joko Widodo at the Presidential Palace on Friday (2/2/2024), as confirmed by Energy and Mineral Resources Minister Arifin Tasrif. The investment drive stems from ENI's recent discovery of a substantial gas reserve, totaling 5 trillion cubic feet (Tcf), in the Geng North-1 well within the North Ganal Production Sharing Contract (PSC) in East Kalimantan. The company finalized the acquisition of Neptune Energy Group Limited's participation rights in this project on January 31, 2024. During the meeting, ENI's CEO, Claudio Descalzi, unveiled plans for a new gas production hub in Geng North, Kutai Utara Basin, East Kalimantan, capable of processing 1 billion cubic feet per day (Bcfd) of gas. Additionally, ENI intends to expand gas production at the South Kutai Basin facility to 750 million standard cubic feet per day (MMscfd). These initiatives are expected to significantly augment Indonesia's gas production for domestic consumption and export markets. Descalzi emphasized the positive impact of these ventures, along with ongoing projects in the East Merakes and Maha fields, on local content.
Furthermore, ENI completed the acquisition of the Indonesia Deepwater Development (IDD) project, previously operated by Chevron, boasting a gas reserve of 2.67 trillion cubic feet (TCF). This project will be integrated with Geng North-1, divided into northern Gehem-Geng North and southern Gendalo-Gandang sections, with operations targeted to commence by 2028, aiming for a peak production of around 6.8 TCF by 2027. The signing of a Memorandum of Understanding (MoU) between the Ministry of ESDM and ENI's Natural Resources division underscores their commitment to collaborating on biofuel production, carbon offset initiatives, and other energy transition projects. This partnership aligns with Indonesia's goal of achieving Net Zero Emissions (NZE) by 2060 or earlier. Minister Arifin Tasrif expressed hope that this collaboration would bolster Indonesia's decarbonization efforts and strengthen ties between ENI and Indonesia.
