Eni announced a final investment decision for the Geng North and Gendalo‑Gendang gas projects in the Kutei Basin, East Kalimantan, Indonesia, marking a major milestone in the company’s Southeast Asia strategy.
The combined gas in place for the two projects is nearly 10 trillion cubic feet (Tcf), with 550 million barrels of associated condensate. Production is expected to reach a plateau of 2 billion cubic feet per day (Bcf/d) of gas and 90,000 barrels per day (bpd) of condensate, with a startup target of 2028 and plateau production in 2029. The North Hub will host 16 producing wells and the South Hub 7 wells, and the FPSO will have a capacity of over 1 Bcf/d of gas and 90,000 bpd of condensate.
The FID is part of a broader joint venture between Eni and Petronas that will invest more than $15 billion over the next five years. Leveraging existing infrastructure—such as the Jangkrik FPU and the Bontang LNG plant—enables a fast‑track development model that reduces time‑to‑market and improves cost efficiency. The projects will also reactivate an idle liquefaction train at Bontang, extending its operational life and increasing Indonesia’s domestic LNG supply.
Eni’s CEO Claudio Descalzi said, "This is a key milestone that confirms the great cooperation between Eni and the Indonesian government. Eni will provide material volumes of gas and LNG to support Indonesia's long‑term energy security needs." He added, "This agreement is a transformational moment for Eni. We have joined forces with PETRONAS to operate assets across Indonesia and Malaysia, generating synergies across assets, expertise and financial capabilities. It is one of the best we've made in recent times and the largest ever undertaken, creating a leading regional player in a highly dynamic area, with outstanding growth prospects and a significant increase in gas demand on the horizon."
The projects face typical deep‑water challenges, including regulatory approvals, technical complexity, and market price volatility for gas and LNG. However, the integrated approach and strong partnership with Petronas are expected to mitigate these risks and deliver robust returns.
The FID represents a significant expansion of Eni’s gas portfolio in a region with growing demand, reinforcing its strategy to balance traditional hydrocarbons with lower‑carbon projects while supporting Indonesia’s energy security and positioning the company for future growth in Southeast Asia.
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