Our work in Indonesia

Our work in Indonesia began in 1968, when we signed the first agreement with the country. In 2001, we returned to the territory, and currently operate in the Exploration & Production and Global Gas & LNG sectors.

Indonesia

We currently hold participating interests in twelve Production Sharing Contractors (PSCs), in nine of which Eni serves as the operator in deep water areas with active exploration and development programs. The PSCs are spread from western (Krueng Mane, Aceh) to eastern part of Indonesia (Arguni I, West Papua), and also from the northern (Ambalat, North Kalimantan) to the southern border of Indonesia (West Timor, Offshore Timor Sea I, East Nusa Tenggara). The unique locations of Eni in Indonesia’s portfolio areas reflect the company’s philosophy in operating in core business areas as well as frontier areas to manage the risk and achieve the best possible results in terms of hydrocarbon discovery.

 

From exploration to production

Our activities are focused on the area off the coast of the East Kalimantan province, the area off the coast of the island of Sumatra and the onshore/offshore areas of West Timor and West Papua, with a total of 12 blocks. Our exploration and production activities are governed by Production Sharing Agreements (PSAs). In December 2019, Eni East Sepinggan Limited divested to Neptune Energy East Sepinggan B.V.a 20% interest in the East Sepinggan block. We will retain a 65% interest and the operatorship. The majority of production derives from the Eni-operated Muara Bakau exploration block (Eni 55%), where the Jangkrik gas field is located. Production comes from twelve subsea wells connected to the Floating Production Unit (FPU). The gas is sold under a series of long-term contracts, both to the Indonesian state company Pertamina and to Eni itself, which markets it in Asia. The development activities focused on the Merakes offshore gas project in the Eni-operated East Sepinggan exploration block (Eni 85%). In December 2018, the development plan was approved by the country's authorities. The project entails the drilling of five subsea wells that will be connected to the floating production unit (FPU), where the gas from the Jangkrik production field will also be stored, and from which it will be discharged. After being processed by the FPU, the gas is transferred through export pipelines of 79km length to the Onshore Receiving Facility (ORF) which was built by Eni, through East Kalimantan System (EKS) pipelines, until its arrival in LNG Badak refinery and domestic market in Bontang. The exploratory activities were successful, resulting in the discovery of Merakes East in the Eni-operated East Sepinggan block, located close to the future Merakes facilities. In May 2018, we won a 100% stake in the East Ganal exploration block, in the deep waters of the Kutei Basin, near the Muara Bakau block.

In 2019, Eni was awarded the West Ganal exploration block (currently, Eni as operator with a 70% interest) located in the in the same Kutei Basin. The block includes the Maha discovery and other exploration potential prospects, where development activities will be supported by the synergies with existing facilities.

In April 2021, we started gas production from Merakes Project. Merakes gas will be partially sold to the domestic market and will also contribute to the extension of the life of the Bontang LNG facility. In June of that year we drilled and tested the Maha 2 appraisal well, located in West Ganal block offshore Kalimantan. The gas field is located 16 km South-East of Jangkrik FPU. The development plan will most likely foresee a sub-sea completion and a tie-in to Jangkrik FPU. The proximity of Maha field to the existing infrastructures will allow to maximize the synergies and reduce time and costs of future subsea developments. Moreover, through our subsidiary Eni Indonesia, in June 2021 we signed a Memorandum of Understanding with SKK Migas for cooperation on exploration activities. The MoU defines the framework for further cooperation in the processing and interpretation of seismic data owned by the Republic of Indonesia by using Eni’s proprietary technologies and facilities, including the Green Data Centre supercomputers in Ferrera Erbognone, Italy, as well as seismic imaging algorithms.

 

A certified carbon neutral GNL from Jangkrik

In 2021 we signed an agreement with CPC Corporation, taiwanese utility, for the supply at the Yung An receiving terminal (Taiwan) of a LNG cargo certified carbon neutral according to the internationally recognized PAS2060 standard, sourced from the Bontang liquefaction terminal in Indonesia and supplied by the Jangkrik Eni’s gas field. The GHG emissions related to the entire value chain of the LNG cargo, including gas production, transmission, liquefaction, shipping, regasification, distribution and end use, were offset through the retirement of high quality nature based credits.

We create energy

We integrate our business activity with social and environmental sustainability, in order to create shared, long-term value. In Indonesia, for example, we launched the Jangkrik and Merakes projects in the Exploration & Production sector, as well as working to improve services through our local development projects, including the introduction of renewable energy, preservation of coastal areas and support to create a self-reliant community on the island of Borneo. In 2021 the activities and initiatives in the fields of access to water and renewable energy progressed to support the local development areas of Samoja, Kutai Kartanegara and East Kalimantan.

Jangkrik

The project, which was developed and put into production in a very short time, is located off the shore of the Kalimantan area, within the Muara Bakau block (within which Eni is an operator, with 55%), in the offshore basin in the deep waters of Kutei, at around 400 metres below the surface and 70 km off the coast of the eastern Kalimantan region. Production at the two Jangkrik Complex gas fields began in May 2017, with a time-to-market of just three and a half years following our decision to invest in the project.

Discover Jangkrik
Discover Jangkrik

Merakes

The Merakes development project, located in the Kutei Basin in the waters of the East Kalimantan region, will see the drilling of a series of subsea wells, as well as the creation of a dedicated transportation system, at a depth of around 1500 metres. The project is one of the results of our near field exploration strategy, which allows us to optimise our synergies with existing infrastructures for Jangkrik and also to reduce the costs and timings associated with construction and production start-up.

Discover Merakes
Discover Merakes

Waste management in Samboja

In 2018 we began the project “Clean, Green and Healthy Samboja”, which involved the community of Samboja in recycling and reducing home waste. With the help of a group of environmental experts, local families were taught about taking care of their home environment and using barren land to grow fruit and vegetables.

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Discover the project
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Responsible Consumption and Production: Ensure sustainable consumption and production patterns

Joglo Tani Kolong Langit

JTKL is a training centre recently opened in the Samboja area. On its campus, farmers can share their specific skills and expertise in integrated production, growing sources of protein and using vegetable gardens to feed their families.

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Discover the project
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End hunger, achieve food security and improved nutrition and promote sustainable agriculture

Local development initiatives promoted in 2021

Capacity Building of Local Farmers

The successful implementation of the integrated agricultural program has been demonstrated by the community around the operational areas through sustainable agricultural outcomes and outputs. Such outcomes and outputs, namely the increasing number of bare land that has been cultivated up to 40 hectares as of 2021 and approximately 600 people visited the program areas with various purposes, including to learn, practice and purchase daily food needs. The focus of local farmer group that is empowered has also been expanded to two groups, namely Joglo Tani Kolong Langit and Burung Enggang with a total members of around 120 people or about 500 family members benefited from the program. Through integrated agricultural, the groups now also develop its livestock farming such as fish, cow, sheep and chicken, so that fulfilling the group member’s daily food needs. Apart from that, the groups has also expanded from being a farming and learning center for nearby farmers to becoming a reference for student learning center from well-known universities in the region. Currently, the groups are aggressively building agricultural tourism (agro-tourism) which, although not yet fully exploited, has attracted many visitors from neighbouring areas. With a continuous agricultural spirits that is supported by technology, empowering human resources and institutions, together with Eni, Joglo Tani Kolong Langit and Burung Enggang will continue to strengthen agricultural programs to cultivate more unproductive lands into food fields for community food resilience.

School library for the improvement of reading interest

UNESCO declares that Indonesia has a low level of reading interest by 0.01 percent, which placed the country at the 124th position out of 187 countries in Human Development Index (HDI) assessment. The government encourages all stakeholders, including the private sectors to take part in making the people of Indonesia has better interest in reading. Pertaining to that, together with the local office of Education in Muara Jawa, Eni build school library at Sekolah Dasar Negeri (public primary school) 013, which resides by the company’s operation facility. The new school library benefitted 193 students with better and comfortable access to read books.

Training of Product Quality Improvement for Micro, Small and Medium Enterprises

The government declares that Micro, Small and Medium Enterprises (MSME) has a tremendous contribution to the country’s economic development, not to mention the employment. In Muara Jawa, the area where Eni facility is residing, there are found numerous of MSMEs. In order to boost the local MSMEs’ growth and sensitivity to the industry’s aggressively changing trend, Eni Indonesia holds training for the local MSMEs. As many as 40 local MSMEs (approximately 200 people) from two villages were benefited from this activity.

The government’s digital literacy program in increasing the national digital literacy index

Eni Indonesia initiated digital village program with a series of workshop on introduction and optimization/utilization of personal computer as well as Microsoft office programs for the heads of neighbourhood unit (RT) and the setup of a Smart (hotspot) Corner in three villages. Through the program the 76 RT were trained to make the maximum use of computer system to speed up the public administration management and introduce the paperless administration processes. And further, through the smart (hotspot) corner, more people (roughly 20,443 people) in the three villages will have better access to the internet.