Final investment decisions are imminent for two major deepwater gas projects offshore Indonesia, representing a combined investment of approximately US$15 billion. The projects are the Gendalo-Gandang (GeGa) development and the Kutei North Hub project in the southern Kutei basin, managed by a new joint venture between Eni and Petronas.

Project Details and Approvals

The Indonesian government approved the Plan of Development (POD) for the Kutei North Hub in August 2024. This project will exploit the Geng North discovery, containing 5 trillion cubic feet of gas and 400 million barrels of condensate, plus 1.6 Tcf of gas from the nearby Gehem field. The POD for the Gendalo-Gandang project on the Ganal production sharing contract was approved two years prior. It involves developing cumulative 2 Tcf gas reserves via subsea wells tied back to the existing Jangkrik floating production unit, extending Jangkrik's production plateau by at least 15 years.

Joint Venture and Strategic Context

Eni and Petronas formed their NewCo joint venture in November of the previous year. This venture plans to launch eight new upstream projects in Indonesia and Malaysia within three years as part of an initial $15 billion five-year investment. The first phase comprises four projects in each country, alongside exploration drilling. The partnership leverages major discoveries exceeding 15 Tcf in Indonesia and a combined 50 Tcf of gas resources across both nations, aiming to unlock significant gas potential and strengthen regional energy security. The venture expects to deliver over 500,000 barrels of oil equivalent per day in the mid-term by leveraging existing assets and developing initiatives in the Kutei basin and Malaysia.

Current Status and Infrastructure

Eni has already launched key tenders for the projects and tasked Saipem with supplying the floating production, storage and offloading vessel for the Kutei North Hub. The formation of the new company to manage the projects is pending, with the name yet to be determined.