Huge gas discovery surfaces in Southeast Asian waters

April 20, 2026, by Melisa Cavcic

Italy’s energy giant Eni has unveiled a new natural gas discovery off the coast of Indonesia, Southeast Asia. This find is said to confirm the strategic potential of the country’s Kutei Basin, unlocking significant new volumes for domestic and international markets.

Eni claims to have made a new giant gas discovery at the Geliga‑1 exploration well, drilled in the Ganal block in the Kutei Basin, offshore Indonesia, approximately 70 kilometers from the East Kalimantan coast. The preliminary estimates indicate in-place resources of approximately 5 trillion cubic feet (tcf) of gas and 300 million barrels of condensate in the encountered interval.

The well was drilled to a total depth of around 5,100 meters in a water depth of about 2,000 meters and encountered a significant gas column in the targeted Miocene interval, characterized by excellent petrophysical properties. The Italian firm explains that a drill stem test (DST) is planned to assess the productivity of the reservoir.

The Geliga‑1 discovery, which is perceived to be part of a highly successful exploration track record in the Kutei Basin, follows the Geng North discovery made in late 2023, only 20 kilometers south of Geliga, as well as the more recent Konta‑1 well discovery announced in December 2025.

These results are interpreted to confirm the significant potential of the basin’s gas play and the scalability of resources in the area. The latest discovery follows the recent final investment decisions (FIDs) for the Gendalo and Gandang gas project (South Hub), and for the Geng North and Gehem fields (North Hub).

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The North Hub project will leverage a newly built FPSO with a handling capacity of 1 bscfd of gas and 90,000 bpd of condensate, as well as the existing Bontang LNG plant. Eni highlights that analyses are ongoing to evaluate accelerated development options, considering proximity to existing and planned infrastructure, which offers potential synergies in terms of time‑to‑market and cost optimization.

According to the Italian giant, the discovery is adjacent to the not‑yet‑developed Gula gas discovery with 2 tcf of gas in place and 75 million barrels of condensate. The initial assessments indicate that the combined Geliga and Gula resources have the capacity to produce an additional 1 bscfd of gas and 80,000 bpd of condensate.

This opens the possibility, among others, of establishing, in a fast‑track mode, a third production hub in the Kutei Basin by mirroring the development concept of the ongoing North Hub project. In addition, studies are underway to evaluate a further rejuvenation of Bontang by resuming additional liquefaction capacity beyond what is already planned for the North Hub development, further extending the plant’s operational life.

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Eni drilled four other exploration wells within the same basin over the past six months. The exploration campaign will continue with one additional well planned in 2026 and two further wells in 2027. The Geliga‑1 discovery is located in the Ganal PSC, operated by Eni with an 82% interest, while Sinopec holds the remaining 18%. This PSC is part of a portfolio of 19 blocks, 14 in Indonesia and 5 in Malaysia, that will be contributed to Searah, a jointly controlled company between Eni and Petronas.

“The new company will integrate assets, technical expertise and financial capabilities to support growth and strengthen its position in Southeast Asia. Searah’s business plans include the development of approximately 3 billion barrels of oil equivalent (boe) of discovered resources and the unlocking of significant exploration potential,” emphasized the Italian player.

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The closing of the transaction is expected within Q2 2026. The valorization to a third party of a 10% stake in the Eni Indonesia portfolio withheld from the Searah transaction is underway and expected to be concluded in 2026. The Geliga discovery is perceived to add to the value of this sale.