Energy Minister Ignasius Jonan, center, poses with officials after launching the locally assembled Jangkrik floating gas processing unit the Riau Islands on April 21. (Photo courtesy of the Ministry of Energy and Mineral Resources)

Italy's Eni Starts Production at Jangkrik Natural Gas Field Ahead of Schedule


MAY 16, 2017

Jakarta. Italian oil and gas giant Eni has started production at the Jangkrik natural gas field off the Indonesian coast ahead of schedule, with output set to supply both domestic and export markets, the company said in a statement on Monday (15/05).

Jangkrik consists of two gas fields, both located in the Muara Bakau block in the Kutei basin in the Makassar Strait.

The project was completed early, with production starting within three-and-a-half years after the project was approved.

Eni operates the Muara Bakau block, controlling a 55 percent stake via its Amsterdam-based affiliate, Eni Muara Bakau.

The other shareholders are La Defense, France-headquartered Engie E&P, through its subsidiary GDF Suez Exploration Indonesia (33.33 percent) and Saka Energi Muara Bakau, an affiliate of state-controlled gas distributor Perusahaan Gas Negara (11.67 percent).

"We are very proud of what we have achieved with the Jangkrik Development Project," Claudio Descalzi, chief executive of Rome-headquartered Eni, said in the statement.

Eni expects to extract 450 million standard cubic feet of natural gas per day (mmscf/d), equivalent to 83,000 barrels of oil equivalent per day (boed), from 10 deep-water subsea wells in the Muara Bakau block. This is equivalent to about 7 percent of Indonesia's total daily natural gas output, according to a data from the Ministry of Energy and Mineral Resources.

The gas field is connected to the newly built Jangkrik floating production unit, with the gas, after processing, traveling through a 79-kilometer pipeline to an onshore receiving facility, and then sent on to another Eni facility in East Kalimantan, before reaching the Bontang gas liquefaction plant in the same province.

"It provides the opportunity for the Jangkrik floating production unit to become a hub for the development of our nearby gas discovery," in the Merakes field located in East Sepinggan block in East Kalimantan, Descalzi said.

Eni holds 85 percent ownership in the block, while Indonesian state energy company Pertamina controls the remainder.

The Merakes field is expected to start production within the next two years.

"We will consolidate our near field exploration strategy and operating model and maximize the integrated development of our projects also in Indonesia," Descalzi said.

Eni has had a presence in the archipelago since 2001. One of its major oil and gas assets in Indonesia is located in the Mahakam River delta in East Kalimantan.