Italian Gas Giant Eni Allocates IDR 254.54 Trillion for Deepwater Project in East Kalimantan
GAS INDUSTRY NEWS
M Ryan Hidayatullah (Bisnis.com)
3/19/2026
Italian energy giant Eni has officially made a Final Investment Decision (FID) for the development of the Gendalo–Gandang (South Hub) and Geng North–Gehem (North Hub) gas projects off the coast of East Kalimantan.
This investment decision was made only 18 months after the approval of the Plan of Development (POD) in 2024, marking the acceleration of the development of Indonesia's deepwater gas projects.
Head of SKK Migas Djoko Siswanto said that the project's FID is a strong signal of global investor confidence in Indonesia's upstream oil and gas investment climate.
"This investment decision is an important step in supporting increased national gas production while strengthening Indonesia's energy security," he said in a statement quoted on Thursday (March 19, 2026).
According to Djoko, this project requires an investment of US$ 15 billion or equivalent to Rp254.54 trillion (assuming an exchange rate of Rp16,969 per US$). He explained that Eni is currently simultaneously conducting a tender process for the procurement of goods and services and has purchased goods that are LLI (Long Lead Items). He believes this could have a multiplier effect, including related to workforce absorption.
"With this investment value, it is estimated that it will absorb a significant workforce, up to thousands of people," said Djoko.
He explained that the Gendalo–Gandang (South Hub) and Geng North–Gehem projects utilize deepwater production technology and existing infrastructure. This includes the Jangkrik FPU and the reactivation of Train F of the Bontang LNG Plant's gas liquefaction facility, thereby increasing cost efficiency and accelerating the gas commercialization timeline.
Development of Gendalo and Gandang will be carried out at sea depths of 1,000–1,800 meters, with the drilling of seven production wells connected to the Jangkrik facility.
Meanwhile, the North Hub project involves drilling 16 production wells at depths of 1,700–2,000 meters, which will be connected to a new FPSO with a processing capacity of over 1 billion cubic feet of gas per day and 90,000 barrels of condensate per day.
Together, these two projects have potential resources of approximately 10 trillion cubic feet of gas (TCF) and 550 million barrels of condensate. Production is projected to begin in 2028 and peak in 2029 with a capacity of approximately 2 billion cubic feet of gas per day and 90,000 barrels of condensate per day.
The produced gas will be piped onshore to supply the domestic pipeline network and support LNG production at the Bontang facility for domestic and export markets. The condensate will be processed and stored at the offshore FPSO facility before being shipped by tanker.
This investment decision represents a significant milestone in Indonesia's deepwater gas development and strengthens the partnership between Eni and the Indonesian government. The significant volumes of gas and LNG from these projects will support Indonesia's long-term energy security.
Furthermore, this project will also be part of the assets to be combined in a business partnership between Eni and Malaysian energy company Petronas, to form a new company (NewCo) targeted to produce more than 500,000 barrels of oil equivalent per day by 2029.
Eni has been operating in Indonesia since 2001 and is a key gas producer in the Kutai Basin in the Makassar Strait, an area now developing as a strategic gas production hub for Indonesia.
Italian energy giant Eni has officially made a Final Investment Decision (FID) for the development of the Gendalo–Gandang (South Hub) and Geng North–Gehem (North Hub) gas projects off the coast of East Kalimantan.
This investment decision was made only 18 months after the approval of the Plan of Development (POD) in 2024, marking the acceleration of the development of Indonesia's deepwater gas projects.
Head of SKK Migas Djoko Siswanto said that the project's FID is a strong signal of global investor confidence in Indonesia's upstream oil and gas investment climate.
"This investment decision is an important step in supporting increased national gas production while strengthening Indonesia's energy security," he said in a statement quoted on Thursday (March 19, 2026).
According to Djoko, this project requires an investment of US$ 15 billion or equivalent to Rp254.54 trillion (assuming an exchange rate of Rp16,969 per US$). He explained that Eni is currently simultaneously conducting a tender process for the procurement of goods and services and has purchased goods that are LLI (Long Lead Items). He believes this could have a multiplier effect, including related to workforce absorption.
"With this investment value, it is estimated that it will absorb a significant workforce, up to thousands of people," said Djoko.
He explained that the Gendalo–Gandang (South Hub) and Geng North–Gehem projects utilize deepwater production technology and existing infrastructure. This includes the Jangkrik FPU and the reactivation of Train F of the Bontang LNG Plant's gas liquefaction facility, thereby increasing cost efficiency and accelerating the gas commercialization timeline.
Development of Gendalo and Gandang will be carried out at sea depths of 1,000–1,800 meters, with the drilling of seven production wells connected to the Jangkrik facility.
Meanwhile, the North Hub project involves drilling 16 production wells at depths of 1,700–2,000 meters, which will be connected to a new FPSO with a processing capacity of over 1 billion cubic feet of gas per day and 90,000 barrels of condensate per day.
Together, these two projects have potential resources of approximately 10 trillion cubic feet of gas (TCF) and 550 million barrels of condensate. Production is projected to begin in 2028 and peak in 2029 with a capacity of approximately 2 billion cubic feet of gas per day and 90,000 barrels of condensate per day.
The produced gas will be piped onshore to supply the domestic pipeline network and support LNG production at the Bontang facility for domestic and export markets. The condensate will be processed and stored at the offshore FPSO facility before being shipped by tanker.
This investment decision represents a significant milestone in Indonesia's deepwater gas development and strengthens the partnership between Eni and the Indonesian government. The significant volumes of gas and LNG from these projects will support Indonesia's long-term energy security.
Furthermore, this project will also be part of the assets to be combined in a business partnership between Eni and Malaysian energy company Petronas, to form a new company (NewCo) targeted to produce more than 500,000 barrels of oil equivalent per day by 2029.
Eni has been operating in Indonesia since 2001 and is a key gas producer in the Kutai Basin in the Makassar Strait, an area now developing as a strategic gas production hub for Indonesia.
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