Italian oil and gas company ENI is set to invest a total of US$14.8 billion (Rp 240 trillion) in the Indonesia Deepwater Development (IDD) project, according to the Upstream Oil and Gas Regulatory Task Forces (SKK Migas).
“Revision of the IDD project development plan has been completed in 2024, with the target to commence operations by 2027,” SKK Migas Deputy Chief Shinta Damayanti said on Wednesday, May 29, 2024.
The IDD project integrates several fields and work areas in the deep waters of the Kutai Basin, with depths reaching between 1,000 and 2,000 meters below sea level.
The investment for the IDD development is divided into two segments. The southern IDD segment, Gendalo-Gandang, requires an investment of US$3.4 billion. The northern segment, extending from Gehem to Geng North, has an investment value of US$11.4 billion.
ENI was appointed as the operator of IDD in July 2023 after acquiring Chevron’s participating interest, now holding a majority share of 82 percent in the project. This transition was formalized through a sales purchase agreement between Chevron Makassar Limited, Chevron Ganal Limited, Chevron Rapak Limited, and ENI Lasmo.
ENI holds participating interests in 12 oil and gas production sharing contracts in Indonesia, acting as the operator in nine of these deepwater contracts, and actively pursuing exploration and development programs.
ENI’s strategic acquisition of the IDD block is bolstered by its existing production facilities in close proximity, such as the Muara Bakau Block and the Merakes Field in the East Sepinggan Block, East Kalimantan. These locations are parallel to the IDD site in the same basin and province.
Chevron decided to exit the IDD project as it deemed the second phase, which includes the Ganal and Rapak Blocks, to be economically unviable and non-competitive within its global portfolio.
