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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 Gas & Power sectors.

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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.

 

Exploration and production

We began working in the country after winning the international competitive bidding opened by the Burmese government and signing two production-sharing contracts (PSCs) for exploring the onshore blocks RSF-5 and PSC-K. The joint venture is made up of us, in the guise of our operator Eni Myanmar B.V. with 90%, and Myanmar Production and Exploration Company Ltd with 10%. The first block covers 1,292 km2 and lies in the vast Salin basin, around 500 km north of Rangoon, and the second covers 6,558 km2 and lies in the unexplored basin of Pegu Yoma-Sittaung, in the country's middle. The exploration period is divided into three phases and will end in 2020. Another two PSCs were added in 2016 (also after international competitive bidding) in the Deepwater offshore block MD-02 and MD-04.  Eni Myanmar B.V. as operator with 50% and Total E&P Myanmar with 50% compose the joint venture in MD-04. MD-2 block was relinquished in January 2020. In early 2020 Eni Myanmar drilled in onshore block RSF-5 the Shwe Nan Htike-1 well, its first exploration well in the country.

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. Start-up is scheduled for 2021.

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 (currenty, 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.

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.

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