SKK Migas Boss Reveals Findings of Giant Oil and Gas Field in Kalimantan

Jakarta –

The Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) revealed the discovery of giant gas potential in the Geng North well in the North Ganal block, East Kalimantan. The well discovered by the Italian company, ENI, is projected to contain 5 trillion cubic feet (tcf) of gas in place.

“For one well, the cost of the well because it is offshore costs US$ 100 million. And the estimated hydrocarbon or in-place resources are 5.3 tcf of gas and 380 million barrels of oil,” said Dwi, at the Hearing Meeting (RDP) in Senayan, Jakarta, Thursday (30/11/2023).

This data is the result of ENI’s findings as of October 2 2023. Dwi said that the capacity of this project reaches 1,000 MMscfd, which is expected to be able to optimize Bontang LNG utilization.

He added that ENI itself plans to accelerate its development by emulating what is being implemented at ENI in Egypt. Thus, it is hoped that around 2027-2028 this region can start production.

“So the target for 2027-2028 is already on stream and we don’t have to build an LNG Plant like in Tangguh, but here we directly utilize the LNG Plant in Bontang. Where currently there are 2 trains, later with the addition of Geng North and IDD in the north it will become a road 4 trains with 1 train standing by,” he explained.

According to him, this step will have a very good impact on optimizing Bontang LNG so that it can come back to life. Dwi said, according to the results of ENI’s evaluation, around Geng North and IDD there would be potential for new wells which could be continued to maintain the plateau there.

“So if we look at ENI in East Kalimantan, the plateau will be maintained at 1,700 MMscfd, and as a comparison, BP Tangguh currently operates with 2,100 MMscfd and later from Abadi Masela it will be around 1,900 MMscfd. So later these giants will be added to the giant potential “It will come from Andaman in Aceh if we later run LNG Arun,” he concluded.

As additional information, the discovery of oil and gas reserves in Geng North with an initial estimate of discovered resources of +/- 609 MMBOE (recoverable) is not only recorded as the 3rd largest discovery in the world in 2023. This discovery will also increase the upstream oil and gas investment rating in Indonesia and investor attraction.

Deputy for Exploration, Development and Management of SKK Migas Working Areas, Benny Lubiantara, said that before the discovery of Geng North, the investor attractiveness rating assessment published by HIS Markit, Indonesia’s position had increased from 5.27 to 5.4 in the first quarter of 2023. Therefore, Benny optimistic that Indonesia’s investor attractiveness rating will increase again and of course will raise Indonesia’s ranking better than currently which is still ranked 9th in Asia Pacific.

“Regarding the Geng North discovery, Wood Mackenzie in its publication in October 2023 has repositioned Indonesia as a country with promising exploration potential. Therefore, we are optimistic that in the future exploration investment will be even more massive and aggressive,” explained Benny, in his statement, Wednesday ( 10/18/2023).

(shc/rrd)