Eni makes massive natural gas discovery offshore Indonesia
(WO) – Eni announced a significant natural gas discovery from the Geng North-1 exploration well drilled in North Ganal PSC, about 85 km offshore East Kalimantan in Indonesia. Preliminary estimates indicate a total structure discovered volume of 5 trillion cubic feet (Tcf) of natural gas in place with a content of condensate estimated up to 400 MMbbl. The acquired data will allow the company to study the options for a fast-track development.
Geng North-1 was drilled to a depth of 5,025 m in 1,947 m water depth, and encountered a gas column about 50 m thick in a Miocene sandstone reservoir with excellent petrophysical properties that has been subject of an extensive data acquisition campaign. A well production test (DST) has been successfully performed for a full assessment of the natural gas discovery, and although limited by the test facilities, it has allowed to estimate a well capacity of up to 80-100 MMcfd and about 5-6 Mbpd of condensate.
The natural gas discovery confirms the effectiveness of Eni’s strategy aimed at creating value through its deep knowledge of geological plays and the application of advanced geophysical technologies. The ongoing exploration campaign, along with the recent acquisitions, is in line with Eni’s energy transition strategy to progressively shift its portfolio mix towards gas and LNG, targeting 60% in 2030, and to increase its LNG equity portfolio. Indonesia, and South-East Asia in general, play a relevant role in this strategy.
Thanks to its location and significant size, the natural gas discovery has the potential to contribute substantially to the creation of a new production hub, in the Northern part of the Kutei basin, to be connected to the Bontang LNG facilities on the coast of East Kalimantan, further exploiting its available ullage capacity. It is estimated that, in addition to Geng North, more than 5 Tcf of natural gas in place are present in undeveloped discoveries within the area of interest, while a significant multi-Tcf exploration potential is under maturation through the ongoing studies.
The Geng North natural gas discovery is adjacent to the Indonesia Deepwater Development (IDD) area that includes several stranded discoveries located within the Rapak and Ganal PSC blocks, for which Eni recently announced the acquisition of Chevron interests, increasing its participating interest and acquiring the operatorship.
Significant synergies between the two areas are envisaged in terms of gas development options. The acquisition also provides the opportunity to fast track the development of the Gendalo and Gandang gas project (around 2 Tcf of gas reserves) through Eni’s operated Jangkrik facilities.
The Geng North natural gas discovery comes shortly after the announcement of Eni’s agreement to acquire Neptune Energy, whose completion will allow to further strengthen Eni’s position in the North Ganal Block.
Lead photo by Brett Rogers