In spring 2018, the Ministry of Energy and Mineral Resources of the Republic of Indonesia approved the development plan for the field within the production sharing contract (PSC) in East Sepinggan, offshore of East Kalimantan, which was then converted into a Gross Split PSC in December 2018. The investment plan was authorised by our Board of Directors in December of the same year. The field is 1,500 m deep and about 35 km south-west of the Jangkrik floating production unit (FPU). In December 2018 we drilled and tested the exploration prospect Merakes East, in the East Sepinggan block, offshore of Kalimantan in Indonesia, 33 km south-east of the Jangkrik floating production unit (FPU) and 3 km east of the Merakes field. The well was drilled 1,592 m under water, reaching a total depth of 3,400 m and coming up against a net 15 m of sand that yielded gas, in two separate layers from the Miocene age. The production test, which was limited by surface infrastructure, indicated the reservoir was highly productive and gave us all the necessary data to do a mineral assessment of the discovery.

In 2019-2020 development activities are related to the offshore Merakes gas project in the operated East Sepinggan block (Eni’s interest 65%). The project foresees the drilling and the completion of five subsea wells, which will be tie-back to the Floating Production Unit (FPU) of the Jangkrik producing field (Eni operator with a 55% interest). In April 2021 we started gas production from the project. The five deep-water subsea wells will guarantee a production capacity of 450 million standard cubic feet per day (MMSCFD), equivalent to 85,000 barrels of oil equivalent per day (BOED). The field has been connected to the Jangkrik Floating Production Unit (FPU). The gas produced from Merakes is exported through subsea pipelines to the Jangkrik FPU. After being processed the gas is exported to the Onshore Receiving Facility (ORF) in Senipah via the existing Jangkrik export pipelines. 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, one of the most reliable LNG processing plants in the world, that supplies liquefied natural gas to both the domestic and export markets.

We believe that workplace safety is a fundamental principle that we share with employees, contract workers and local communities. For that reason, we implement all necessary measures to avoid accidents, including organisational models to assess and manage risk, training programmes, skills development and the promotion of a culture of safety.

The Merakes development project involves drilling five subsea wells that are linked to the floating production unit (FPU) in the production field of Jangkrik, and creating a transport system for them. The gas produced will be sent to the liquefaction plant in Bontang, in East Kalimantan, by using all the existing infrastructure in the field of Jangkrik, and then sold on the domestic market.

The field's proximity to FPU Jangkrik allows us to maximise synergies with existing infrastructure, reduce costs and times for this second development in the country's deep waters. The new production will help extend the productive life of the plant.The field's proximity to FPU Jangkrik allows us to maximise synergies with existing infrastructure, reduce costs and times for this second development in the country's deep waters. The new production will help extend the productive life of the plant.

We have launched various projects and initiatives for environmental protection and healthcare and educational development for local communities in operational areas in East Kalimantan, Papua and North Sumatra. In 2018, we launched a programme to facilitate access to energy and water for local communities, as well as training programmes on farming and healthcare initiatives.

Eni has never conducted oil and gas exploration and development activities within the boundaries of natural sites included on the UNESCO World Heritage List. In May 2019, we formally committed never to do so and officially instated a biodiversity and ecosystem services (BES) policy as part of our transformation journey. We are committed to long-term investment – looking beyond short-term profit to find ways to help create a more sustainable planet – as recognised in our new company mission, which is in turn inspired by the UN’s Sustainable Development Goals.