Italian global energy company Eni has officially issued a Final Investment Decision (FID) for the development of a deepwater gas project in Indonesia, valued at approximately US$15 billion, equivalent to IDR 254 trillion (rate of IDR 16,956 per US dollar). This investment will support the development of two major projects Gendalo-Gandang (South Hub) and Geng North-Gehem (North Hub) located offshore East Kalimantan. The FID was announced just 18 months after the approval of the Plan of Development (POD) in 2024, reflecting the accelerated progress of deepwater gas development in Indonesia.
The project leverages advanced deepwater production technology and existing infrastructure, including the Jangkrik Floating Production Unit (FPU) and the reactivation of Train F at the Bontang LNG Plant. These measures are expected to enhance cost efficiency and accelerate the commercialization timeline.
The Gendalo-Gandang development will be carried out at water depths of 1,000 to 1,800 meters, involving the drilling of seven production wells connected to the Jangkrik facility. Meanwhile, the North Hub project will involve 16 production wells at depths of 1,700 to 2,000 meters, connected to a new Floating Production, Storage, and Offloading (FPSO) facility. This FPSO will have a processing capacity exceeding 1 billion standard cubic feet of gas per day (BSCFD) and 90,000 barrels of condensate per day.
Combined, these projects hold estimated resources of approximately 10 trillion cubic feet (TCF) of gas and 550 million barrels of condensate. Production is expected to commence in 2028 and peak in 2029, reaching around 2 billion cubic feet of gas per day and 90,000 barrels of condensate per day. The produced gas will be transported onshore via pipeline to supply the domestic gas network and support LNG production at the Bontang facility for both domestic use and export markets. Condensate will be processed and stored at the offshore FPSO before being transported by tanker.
This FID marks a significant milestone in Indonesia’s deepwater gas development and strengthens the partnership between Eni and the Indonesian government. The substantial gas and LNG output from this project is expected to contribute to the country’s long-term energy security. The Head of the Upstream Oil and Gas Regulatory Special Task Force (SKK Migas), Djoko Siswanto, welcomed the decision, describing it as a strong signal of global investor confidence in Indonesia’s upstream oil and gas sector.
He added that the project would support increased national gas production while reinforcing energy security. “SKK Migas, together with the government, will continue to accelerate strategic projects like this to maximize benefits for the state and the community, while also driving economic growth,” Djoko stated in a written statement on Wednesday (March 18, 2026).
In parallel with the FID, Eni has initiated procurement tenders and secured Long Lead Items (LLI). Djoko also noted that Eni Indonesia’s Managing Director had reported the FID announcement to the Minister of Energy and Mineral Resources. According to Djoko, the investment is expected to generate a multiplier effect, including job creation. The project will also form part of a broader asset consolidation between Eni and Malaysian energy company Petronas, aimed at establishing a new entity (NewCo) with a production target exceeding 500,000 barrels of oil equivalent per day by 2029. Eni has operated in Indonesia since 2001 and remains a key gas producer in the Kutai Basin, Makassar Strait an area increasingly recognized as a strategic hub for national gas production.
March 18, 2026, CNBC Indonesia
(https://www.cnbcindonesia.com/news/20260318202135-4-720169/tok-perusahaan-minyak-italia-ini-resmi-investasi-di-proyek-rp254-t-ri)