Eni awarded another offshore oil block in Indonesia

Source: Eni

In the 1st Indonesian International Bid Round 2012, Eni has been awarded the East Sepinggan block with a 100% participating interest.

The block, located in the offshore East Kalimantan, about 170 kilometers south east of the Bontang LNG processing facility, covers an area of 2,913 square kilometers in the Kutei Basin, a rich hydrocarbon province with several giant discoveries already in production.

The East Sepinggan work programme plans for the full 3D seismic survey of the area and the drilling of one well, to be completed within the next three years.

This award, which follows the signing in November 2011 of the North Ganal PSC (Kutei Basin) and the Arguni I PSC (Bintuni Basin, West Papua), confirms Eni's strong commitment to expand its E&P activities in Indonesia, one of the most promising hydrocarbon basins in the rapidly growing Far East oil&gas market.

Eni has already been developing the Jangkrik deep offshore gas field and appraising the Jangkrik NE discovery, near the East Sepinggan block, aiming to take advantage of a newly planned production hub.

Eni has been operating in Indonesia since 2001 and currently owns a large growing assets portfolio that is becoming more and more important to support the group overall production growth. The company holds working interests in twelve permits and operates eight of them. The offshore activities are located in the Tarakan and Kutei Basins, offshore Kalimantan, north of Sumatra, West Timor and West Papua. 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 equity production of approximately 18,000 barrels of oil equivalent per day 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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