Ente Nazionale Idrocarburi (ENI), an oil and gas company from Italy, will become the new operator of the Indonesia Deepwater Development (IDD) project with an 82% stake.
IDD previously owned by Chevron
The IDD project is an integrated project of several oil and gas fields and Working Areas (WK) in the deep sea of the Kutai Basin, with depths reaching 1,000 to 2,000 meters below sea level.
This project is a national strategic project (PSN) with production potential of up to 844 million standard cubic feet per day (MMscfd) for natural gas and 27,000 barrels per day (BPOD) for petroleum.
This step is ENI’s attempt to take over a strategic oil and gas block because it already has production facilities not far from IDD, the Muara Bakau Block and the Merakes Field, East Sepinggan Block, East Kalimantan.
Chevron released IDD because it considered that the phase II project consisting of the Ganal Block and Rapak Block did not meet the company’s economic value and lack in global competitiveness. The IDD project also includes the Gendalo and Gehem fields. ENI had also built production facilities, such as the Jangkrik Floating Production Unit (FPI).
According to SKK Migas, this project which had two operational areas: north and south are also aimed to integrate ENI’s portfolio, including the Jangkrik Field in the Muara Bakau Block and part of Kutai Basin in East Kalimantan’s offshore.
The southern area will supply gas to ENI’s Jangkrik FPU by integrating with the Maha-2 Field in the Muara Bakau Block. The northern site will link with Merakes Field in the East Sepinggan Block, which recently showed ENI’s remarkable success in development. This Italian company will thus manage significant oil and gas assets offshore East Kalimantan’s offshore.
Previously, Chevron resigned in July 2019. ENI had also signed a sales and purchase agreement (SPA) between Chevron and ENI in April, then was rescheduled to May 2023.
Chevron previously released at the time 62% of participating interest (PI) for US$ 5 billion (IDR 73 trillion). At the time, ENI possessed 20%. Making the participating interest to 82% once released and signed. While the other being 18% owned by China Petroleum and Chemical Corporation (Sinopec). Through the signing, ENI could then continue the project, which had stalled for a long time. However, the signing was scheduled for May 2023, but was postponed until now.
ENI officially the new operator of the IDD project
ENI will officially become the new operator of the IDD project with a majority shareholding of 82%. The signing of the SPA will be agreed upon by Chevron Makassar Ltd, Chevron Ganal Ltd, and Chevron Rapak Ltd with ENI Lasmo.
The signing will be held in Milan, Italy but it is not known when and will be attended by Arifin Tasrif as Minister of Energy and Mineral Resources (ESDM), Tutuka Ariadji as Director General of Oil and Gas, and Dwi Soetjipto Head of SKK Migas.
Currently, ENI has participating rights in twelve production sharing contractors, nine of which ENI acts as operators in deep waters with an active exploration and development program.
“I hope ENI can expand investment in oil and gas activities in Indonesia, especially in the eastern region,” said Arifin.
Also Read: Chevron out, Italian ENI set to take over Indonesia Deepwater Development project
