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| Eni |
Italian energy giant expands output in Kutei Basin with 100MMSCFD target tied to LNG supply growth
Eni has begun gas production at the Merakes East field in the Kutei Basin, offshore East Kalimantan, Indonesia. The milestone follows the final investment decision (FID) made nearly two years ago and marks a critical step in Eni’s broader gas expansion strategy in Southeast Asia.
Located in the East Sepinggan block, where Eni holds an 85% operating stake, Merakes East is expected to produce up to 100 million standard cubic feet per day (MMSCFD), equivalent to 18,000 barrels of oil equivalent per day (boepd).
Offshore Development Enhances LNG Supply Chain
Situated in 1,600 meters of water, about 10km from the original Merakes field, gas from Merakes East is transported via subsea tieback to Eni’s Jangkrik Floating Production Unit (FPU) located 50km away. After initial processing, gas is funneled to the Bontang LNG plant, which serves both domestic and export markets.
This operation builds on Eni’s 2018 discovery, where the exploratory well revealed two Miocene-age gas-bearing sand levels at a depth of 3,400m.
Strategic Collaboration with SKK Migas and Petronas
The Merakes East development was carried out in close coordination with Indonesia’s upstream regulator SKK Migas, with a focus on local content utilization and boosting domestic gas supply.
Eni’s growth strategy aligns with the development of nearby assets like the Maha field and the recently approved Northern Hub and Gendalo-Gendang fields. These ventures could collectively push Eni’s output in the basin to 2 billion cubic feet per day (BCFD) and 90,000 barrels per day (bopd) of condensate.
Additionally, Eni is in discussions with Petronas to form a joint venture encompassing upstream assets in Indonesia and Malaysia. The combined entity would hold 3 billion barrels of oil equivalent (boe) with 10 billion boe in exploration potential—an effort to create a major LNG powerhouse in the region.
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