Eni, the Italian energy giant, started the production of natural gas from the Merakes East Field located in the Kutei basin, offshore Indonesia. The field is expected to produce up to 100 million standard cubic feet per day (mmscf/d), equivalent to 18,000 barrels of oil equivalent per day (boe/d).
The field is connected to the Jangkrik Floating Production Unit (FPU) operated by Eni through a subsea pipeline. Eni said, “After the initial processing onboard the FPU, the gas will be transferred via the pipeline network to supply the domestic market and the Bontang liquefaction plant, which supplies LNG for both the local market and export.”
Eni is the main operator of the Kutei basin and one of the key players in Indonesia’s natural gas market. It plans to produce up to 2 billion cubic feet per day (bcf/d) of gas and 90,000 boe/d after starting production from the North Hub and the Gendalo-Gandang fields.
Eni has recently announced talks with Malaysia’s PETRONAS to establish a joint venture holding company to oversee selected upstream assets in Indonesia and Malaysia. This joint venture is expected to generate substantial synergies towards becoming a major LNG player in the region and will combine approximately 3 billion barrels of oil equivalent (boe) of reserves with an additional 10 billion boe of potential exploration upside.
Eni has been operating in Indonesia since 2001. It currently holds a large portfolio with multiple exploration, development, and production assets. It produces about 700 mmscf/d in East Kalimantan.
