Italian energy company Eni has commenced gas production from the Merakes East field in the Kutei Basin, offshore Indonesia, nearly two years after reaching a final investment decision (FID).
Situated in the East Sepinggan block, where Eni holds an 85% operating share, the site is expected to contribute up to 100 million standard cubic feet per day (MMSCFD) of gas. This is equivalent to approximately 18,000 barrels of oil equivalent per day (boepd), to Eni’s output.
The Merakes East field is positioned in waters 1,600m deep and lies about 10km east of the Merakes field. Gas extracted here is connected via a subsea link to the Jangkrik floating production unit (FPU), operated by Eni and located around 50km away.
Following initial processing on the FPU, gas will be channelled through a pipeline network to serve the internal market and the Bontang liquefaction plant, which supplies liquefied natural gas (LNG) domestically and for export.
Eni discovered gas at the Merakes East prospect in December 2018. The exploratory well was drilled to a depth of 3,400m in waters 1,592m deep, identifying two distinct Miocene Age levels with 15 metres of gas-bearing net sands.
This prospect is located offshore Kalimantan province, approximately 33km southeast of Eni’s Jangkrik field and 3km east of the Merakes field.
The initiation of production at Merakes East is said to mark a significant milestone in Eni’s strategy to capitalise on substantial gas resources within Indonesia’s rich Kutei Basin.
This development aligns with ongoing projects such as the Maha field and newly approved plans of development for the Northern Hub and Gendalo-Gendang fields.
Collaboration with SKK Migas, Indonesia’s upstream regulator and supervisor, has been crucial in this venture, aiming to enhance local content utilisation and increase capacity at the Bontang LNG plant while ensuring additional gas supply for domestic use.
In recent years, Eni has solidified its role as a major operator in the Kutei Basin following significant exploration achievements and acquisitions. The company anticipates reaching production levels of up to 2 billion cubic feet per day (BCFD) of gas and 90,000 barrels per day (bopd) of condensate with the initiation of operations at the North Hub and Gendalo-Gandang fields.
Additionally, Eni has announced ongoing discussions with Petronas regarding the formation of a joint venture holding company to manage selected upstream assets in Indonesia and Malaysia. This collaboration is projected to create significant synergies aimed at establishing a major LNG presence in the region.
The joint venture would amalgamate approximately three billion barrels of oil equivalent (boe) reserves with an additional exploration potential of 10 billion boe.
Having operated in Indonesia since 2001, Eni currently maintains a substantial portfolio encompassing exploration, development, and production assets. The company’s current output stands at approximately 700MMSCFD in East Kalimantan.
