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San Donato Milanese (MI), 21 November 2011 - Eni, through its subsidiary Eni Indonesia, has been awarded today two new Production Sharing Contracts (PSCs) in Indonesia.
In the West Papua Province (East Indonesia), Eni has been awarded 100% interest in the Arguni I PSC (5,386 sq. km), located onshore and offshore in the Bintuni Basin. The block is 10 km east of the Tangguh LNG processing facility. The work program foresees the acquisition of 2D and 3D seismic and the drilling of two wells during the first 3 years of exploration.
In the offshore East Kalimantan Province, Kutei Basin, Eni, as part of a consortium including Niko Resources (North Ganal) Ltd., North Ganal Energy Ltd (a wholly-owned subsidiary of Black Platinum Energy Ltd), Statoil Indonesia North Ganal AS and GDF SUEZ, has been awarded the North Ganal PSC (2,432 sq. km). Eni will be the Operator. The North Ganal Block is adjacent to the successful Jangkrik and Jangkrik North East discoveries. The North Ganal deal involves the drilling of one well and the acquisition of 200 km of 2D seismic during the first 3 years of exploration. The Bontang LNG processing facility is located about 80 km west of the North Ganal acreage.
Eni as operator of the Muara Bakau PSC has already presented the Plan of Development for Jangkrik field to the Indonesian Authorities, which is expected to go on stream in 2015 thanks to a fast track development concept. GDF SUEZ is partner in the JV.
Eni has been operating in Indonesia since 2001. The company holds working interests in fourteen permits and operates eight of them. The offshore activities are located in the Tarakan and Kutei Basins, offshore Kalimantan, north of Sumatra and 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. Eni has an equity production of approximately 20,000 boed in this area and has 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 coal-bed methane coming from Sanga Sanga would be liquefied at the Bontang plant, representing the first LNG facility to be supplied with CBM.
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