By Francesca Landini
MILAN (Reuters) – Italy’s Eni could more than double its gas production in Indonesia thanks to the development of a recent discovery and potential synergies with assets it already owns, a company executive said on Friday.
Eni announced earlier this month a gas find at Geng North-1, an exploration well drilled in the North Ganal PSC, off Indonesia.
Energy consultancy firm Wood Mackenzie has identified it as the industry’s largest discovery so far this year.
Preliminary estimates indicated a total discovered volume of 5 trillion cubic feet (tcf) of gas, with an estimated condensate content of up to 400 million barrels.
“On the size of potential North hub, it is still premature to say but … we are planning something which is in between 800 million standard cubic feet per day to 1 billion cubic feet per day, with also significant liquid production,” said Guido Brusco, Eni’s Chief Operating Officer for Natural Resources.
“This could more than double our production from Indonesia,” added Brusco, speaking on a post-earnings conference call.
The executive said the final investment decision on the discovery could happen next year.
Geng North-1, together with the pending completion of the acquisition of Neptune Energy that owns shares in the assets in the area and the recent purchase of Chevron interests in the Rapak and Ganal PSC blocks, opens up significant potential in the Indonesia gas sector, Eni said.
After completing the Neptune Energy purchase Eni will have an 88% participation in Geng North-1.
The Italian group plans to leverage the Bontang liquefied natural gas (LNG) export terminal with the aim to transform Indonesia’s Kutei basin into a global gas hub.
Part of the LNG the group will produce in Indonesia could be sold to Asian clients under long-term contracts, said Cristian Signoretto, Eni’s Deputy of Chief Operating Officer Natural Resources.
(Reporting by Francesca Landini; Editing by Keith Weir)
