In October 2023 Eni made a significant gas discovery at the Geng North-1 well in North Ganal PSC, 85 km off the coast of East Kalimantan, Indonesia. Initial estimates indicate in place volumes of 5 Tcf of gas, along with up to 400 Mbbls of condensate.

Notably, amidst a global downturn in conventional exploration successes in 2023, Geng North stood out as the largest individual discovery reported worldwide for the year. The Geng North-1 well, reaching a total vertical depth of 5,025 m, identified a 50 m thick gas column in a Miocene sandstone reservoir with favourable petrophysical properties. A successful well production test revealed a production capacity of 80-100 mmscfd and 5-6 kbbld of condensate.

Geng North discovery underscores Eni’s exploration strategy to create value through continual enhancement of geological models, the application of advanced geophysical technologies, associated with the development of a reliable system of risk assessment and pre-drill volumes prediction. Over the past two decades, the Kutei Basin has served as a natural laboratory for Eni to test process models of depositional systems, rock physics and DHI’s analysis at the base of seismic interpretation, prospect generation and ranking.

Beyond its technical merit, Geng North has ascended in 2023 Eni’s drilling opportunities portfolio due to its potential for value creation. The discovery has triggered operational synergies in the region, unlocking additional stranded resources through a hub-based development concept. Eni plans to establish a second, ‘Northern’ production hub in the Kutei Basin to exploit the newly discovered and the previously stranded resources, with gas production supplying the Bontang LNG plant and local gas markets.

As part of its growth strategy in the Kutei Basin, Eni acquired Neptune Energy’s international portfolio, including its Indonesian interests and equity in the North Ganal PSC. At the same time, the Geng North discovery is adjacent to the Indonesia Deepwater Development (IDD) area that includes stranded discoveries within the Rapak and Ganal PSC blocks where Eni has increased participating interest and has acquired operatorship from Chevron.

Moreover, in the first half of 2023 Eni secured new acreage through a successful joint bid with Pertamina on the Peri Mahakam PSC. The Geng North discovery significantly boosted the value of those acquisitions.

Ongoing efforts in the Kutei Basin receive crucial support from the Minister of Energy and Mineral Resources of the Republic of Indonesia, aligning with Eni’s energy transition path aiming for 60% gas and LNG in its portfolio by 2030. Indonesia and South-East Asia will continue to play a pivotal role in this strategic direction.