Oil and gas rig offshore Indonesia. (Source: Shutterstock)
Eni will consider fast-tracking development options for its new Geng North-1 gas discovery in the North Ganal production sharing contract (PSC) offshore East Kalimantan, Indonesia, the operator said Oct. 2.
Preliminary estimates indicate volumes of 5 Tcf of gas in place and up to 400 Mbbl of condensate, according to Eni.
Geng North-1 was drilled to a depth of 5,025 m in 1,947 m water depth in the Kutei Basin. It encountered a gas column about 50-m thick in a Miocene sandstone reservoir that has been subject of an extensive data acquisition campaign. A well production test limited by test facilities has allowed Eni to estimate a well capacity between 80 MMcf/d to 100 MMcf/d and about 5,000 bbl/d to 6,000 bb/d of condensate.
Due to its location and size, Eni said the discovery has the potential to contribute to the creation of a new production hub in the Northern part of the Kutei Basin, to be connected to the Bontang LNG facilities on the coast of East Kalimantan. Eni estimates that, in addition to Geng North, more than 5 Tcf of gas in place in undeveloped discoveries within the area of interest. Ongoing studies are examining further exploration.
The Geng North discovery is adjacent to the Indonesia Deepwater Development area that includes several stranded discoveries within the Rapak and Ganal PSC blocks. In July, Eni announced it was acquiring Chevron’s interests in the blocks, which increased Eni’s participating interest and gave it the operatorship. Eni sees synergies between the two areas in terms of gas development options. The acquisition also provides the opportunity to fast track the development of the Gendalo and Gandang gas project through Eni’s operated Jangkrik facilities.
The Geng North discovery also follows Eni’s June agreement to acquire Neptune Energy, which will further strengthen Eni’s position in the North Ganal Block.
Eni North Ganal Ltd. operates the North Ganal PSC with 50.22% interest on behalf of partners Neptune Energy North Ganal BV with 38.04% interest and Agra Energi I Pte Ltd. with 11.74% interest.
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