Eni Ready for Merakes Development Project Execution
Eni is set for the execution of the Merakes Development Project following the approval secured from the Minister of Energy of Indonesia and the authorization for the investment plan sanctioned by the board of directors.
The Merakes development project, located in the Kutei Basin, offshore East Kalimantan, consists of the drilling and construction of subsea wells with a dedicated transportation system in 1500 meters water depth and connected to the Jangkrik Floating Production Unit (FPU).
The gas production will be shipped to the Bontang LNG plant using also all the other existing facilities of Jangkrik field as well as the East Kalimantan transportation network.
This new production will contribute also to the life extension of the plant, the company noted.
Eni BoD approval comes just few days after the conversion to the Gross Split Scheme of the East Sepinggan PSC (Production Sharing Contract) and the approval of the revised field development plan under the terms of the Gross Split by the Minister of Energy of Indonesia.
Eni’s CEO Claudio Descalzi said: “The Merakes Development Project approval is an important step for our strategy in South East Asia aimed at increasing both our presence and our production only through an organic growth. In order to do so, we will leverage on exploration, which will enable us to increase our reserves first, and then our gas production thanks to the optimization of existing facilities and complying with the strictest time-to-market. The Indonesian domestic market is in big expansion and we will continue to pay attention in order for our activities to support and valorize it.”
Eni is the operator of East Sepinggan Contract Area through its subsidiary Eni East Sepinggan which holds an 85% Participating Interest while PT Pertamina Hulu Energi East Sepinggan holds the remaining 15%.