Italian energy company Eni, along with its partners, Pertamina of Indonesia and Neptune Energy of the UK, has won a contract for the West Ganal exploration block in the Kutei Basin, offshore Indonesia.

The companies were awarded the exploration block by the Ministry of Energy and Mineral Resources following the second conventional oil and gas bidding round 2019.

Eni, as operator, will have a 40% interest in the block, while Pertamina will hold 30% and Neptune 30%.

West Ganal, a new Gross Split PSC (Production Sharing Contract), covers approximately 1,129km² adjoining the Muara Bakau and East Sepinggan PSCs in the Makassar Strait offshore East Kalimantan, which are operated by Eni.

The latest award strengthens the company’s cooperation in the Kutei Basin with Pertamina and Neptune, which already are partners in the Jangkrik field in Muara Bakau block.

The block includes the Maha discovery with gas resources of more than 600bscf (billion standard cubic feet of gas), as well as further exploration potential.

West Ganal block is located near Jangkrik field operated by Eni

The block is located near the facilities of the Jangkrik field operated by Eni, which is expected to benefit the development of the facility, in accordance with Eni’s ‘near field’ strategy that optimises synergies with existing infrastructures.

The East Kalimantan’s Kutei Basin is one of the most promising hydrocarbon provinces in Indonesia and the latest win expands Eni’s position and upstream activities.

In May 2017, the company commenced production from the Jangkik deepwater field in the Muara Bakau PSC. The company also secured approval for the Plan of Development for the Merakes discovery located in East Sepinggan PSC in April 2018.

The development of the new project will enable an increase in the availability and flexibility of gas supply for the domestic market and for export, in addition to strengthening Eni’s position in the LNG market in the Asia-Pacific region.

Operating in Indonesia since 2001, Eni has an extensive portfolio, in 14 permits, in the exploration and production, and development assets.