JAKARTA (TheInsiderStories) - The oil and gas producer from Italy, Eni S.p.A has started the gas production from the Jangkrik block in the Muara Bakau, Kutei basin, East Kalimantan. The project is part of Indonesia Deepwater Development (IDD) project.
“The completion of the project and the start-up of production ahead of schedule further confirm Eni’ strategy and global capabilities. It provides the opportunity for the Jangkrik floating production unit (FPU) to become a hub for the development of our nearby gas discovery Merakes (Eni 85 percent, Pertamina 15 percent), which could start production within the next two yearsm,” said the CEO of Eni, Claudio Descalzi, yesterday.
Located in the deepwater of Makassar Strait, the Jangkrik and Jangkrik North East gas fields have ten deepwater subsea wells and connected to the newly floating production unit (FPU) in the areas. The producer intends to ramp-up production gradually to 450 million standard cubic feet per day (MMSCFD) or 83,000 barrels oil equivalent per day.
The gas will be transported through a 79 kilometers pipeline to Bontang gas liquefaction plant through the East Kalimantan Transportation System. Gas produced from these fields will be exported to foreign markets.
Currently, Eni holds a 55 percent stake in the project through its subsidiary, PT Eni Muara Bakau and became the operators of the Muara Bakau block. Engie E&P through its subsidiary GDF Suez Exploration Indonesia owns a 33.33 percent and PT Saka Energi Muara Bakau holds 11.67 percent.
Last August, American multinational firm, Chevron Corp., (NYSE: CVX) said pulled out from the IDD project and is offering the continuation of the block to ENI. Since early of this year, the company has informed to sell their participating interests in the block managed by PT Chevron Pacific Indonesia.
Acting director general at energy and mineral resources (EMR) ministry, Ego Syahrial revealed, the project has a value of up to US$5 billion. Chevron is the operator and majority shareholder of the IDD project, hold of 63 percent. The remaining shares are owned by ENI, PT Pertamina Hulu Energi, and partners.
A number of fields will be developed in the second phase of IDD, including the Ganal Block with the Gendalo-Gehem Field and the Rapak Block with the Gehem and Bangka Fields. The Bangka Project has been in production since last August 2016 with an installed capacity of 110 million cubic feet of gas and 4,000 barrels of condensate per day.
The IDD project was initiated in 2007 and Chevron is trusted to be the contractor to develop deep sea gas in the Gendalo-Blok Ganal field and the Gehem-Blok Rapak field. Proposals for the project development plans keep changing along with fluctuations in world oil prices, from $6.9 billion to $12 billion, then dropping to $5 billion.
The news about ENI‘ entry had actually been revealed in mid-2019. Early of this year, the Italian giant oil and gas producer has aborted the downstream projects with state-owned energy firm, PT Pertamina.
Beside Jangkrik, ENI has get approval on the Plan of Development for the Merakes field located in the East Sepinggan PSC in the Makassar Strait, East Kalimantan. EMR ministry has granted the approval just three months after the submission of the plan and less than eleven months after the producer started production from its deep water operated asset in the country.
The Merakes field that is estimated to hold about 2 trillion cubic feet of lean gas in place is located in 1,500 meters water depth, 35 kilometers South West of the Jangkrik Floating Production Unit. The field has been discovered by the Merakes 1 well in 2014 which encountered lean gas in world class reservoir quality sands of Pliocene age.
In January 2017, Eni successfully drilled and tested the appraisal well at Merakes 2. Merakes production, likewise that of Jangkrik will contribute to the life extension of the Bontang LNG facilities, one of LNG processing plant which supplies LNG to both the domestic and export markets.
ENI also the operator of East Sepinggan through its subsidiary, East Sepinggan Ltd., which holds 85 percent Participating Interest, while PT Pertamina Hulu Energy holds the remaining 15 percent.
Written by Staff Editor, Email: theinsiderstories@gmail.com
