In the 1st Indonesian International Bid Round 2011, Eni, as part of a consortium including Niko Resources Ltd., Black Platinum Energy Ltd, Statoil ASA and GDF SUEZ has been awarded the North Ganal Block, located offshore East Kalimantan, Indonesia. Eni will be the operator of the new PSC (Production Sharing Contract), which will be signed by the end of the year.
The North Ganal Block covers an area of 2,432 square km in the Kutei Basin, a prolific hydrocarbon province, with several giant discoveries already in production. The North Ganal deal involves the drilling of 1 well and the carrying out of 200 km of 2D seismic survey during the first 3 years of exploration. The Bontang LNG processing facility is located about 80 km west of the North Ganal acreage.
This award confirms Eni as one of the major oil companies committed to invest in E&P activities in Indonesia. Eni already presented the Plan of Development for Jangkrik field to the Indonesian Authorities, which is expected to go on stream from 2015 thanks to a fast development activity. Eni recently made another important discovery at Jangkrik NE, in the offshore Kutei (Muara Bakau PSC), near the North Ganal Block.
Eni has been operating in Indonesia since 2001. Overall, in Indonesia, Eni holds working interests in twelve blocks, and operates six of them. The offshore activities are located in the Tarakan and Kutei Basins, offshore Kalimantan, north of Sumatra West Timor. In the Kutei basin, Eni is also participating in the development of the significant gas reserves located in the Ganal and Rapak blocks.
Other activities are located in the Mahakam River Delta, East Kalimantan, where Eni has an equity production of approximately 20,000 boed and has recently been awarded an interest in Sanga Sanga CBM, a new coal-bed methane production sharing contract (PSC) through its operated joint venture affiliate VICO CBM Limited (Eni 50%, BP 50%). The Sanga Sanga project would be the first LNG plant in the world to be supplied by CBM.
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Source: Eni, October 4, 2011