Eni announces production start-up from Merakes East field

The field is in the East Sepinggan block and will contribute up to 100 MMSCFD of gas or approx. 18,000 boepd to Eni’s production

Eni has started gas production from the Merakes East field, in the Kutei basin, offshore Indonesia. The field is in the East Sepinggan block (Eni 85%, Op.) and will contribute up to 100 MMSCFD of gas or approx. 18,000 boepd to Eni’s production.

Merakes East is located in a water depth of 1,600 meters, approximately 10 km east of the Merakes Field. It is tied back via a subsea connection to the Jangkrik Floating Production Unit (FPU) operated by Eni, situated around 50 km away. This startup is another example of fast track development as the field was brought on production approximately 2 years from FID. After the initial processing onboard the FPU, the gas will be transferred via pipe network to supply the internal market and the Bontang liquefaction plant, which supplies LNG for both the internal market and for export.

The start-up of Merakes East is another important step of Eni’s broader strategy to valorize the considerable gas resources held in Indonesia's prolific Kutei Basin. Along with the ongoing development of Maha field and the recent approval of the Plans of Development for the Northern Hub and Gendalo-Gendang, the East Merakes production start up is the result of the close cooperation between Eni and SKK Migas, Indonesia’s Upstream Regulator and Supervisor. It is consistent with the driver to positively impact the local content and to increase the utilization of available capacity at Bontang LNG plant while also ensuring additional gas volumes for domestic consumption.

Over the last few years, following significant exploration successes and acquisitions, Eni has positioned itself as the main operator of the Kutei basin and one of the key players in the Indonesia's gas market; the company expects to produce up to 2 BCFD of gas and 90,000 bopd of condensate with the start up of the North Hub and the Gendalo-Gandang fields.

Eni has recently announced talks with PETRONAS to establish a joint venture holding company to oversee selected upstream assets in Indonesia and Malaysia. This joint venture is expected to generate substantial synergies towards becoming a major LNG player in the region and will combine approximately 3 billion barrels of oil equivalent (boe) of reserves with an additional 10 billion boe of potential exploration upside.

Eni has been operating in Indonesia since 2001 and currently has a large portfolio including exploration, development, and production assets with a current production around 700 MMSCFD in the East Kalimantan.