Hydrocarbon production in Indonesia mainly occurs in the Muara Bakau exploration block (55 per cent Eni-owned), with 10 subsea wells operating in the Jangkrik gas field and connected to the Floating Production Unit (FPU). The fields within the Muara Bakau exploration block, in the offshore Kutei Basin, are at a depth of about 400 metres and 70km from the East Kalimantan coast.
“Jangkrik” means cricket in Indonesian; crickets being small insects able to jump very high, allowing them to move rapidly. The aim was for the project to progress quickly and uncover large reserves – expectations that have so far been met. The project has progressed with excellent time-to-market, ahead of schedule, and in synergy with the existing Bontang terminal and other adjacent gas discoveries. On 22 June 2017, we sent the first shipment of Liquefied Natural Gas (LNG) produced by the field – a consignment of 22,500m3 from the liquefaction plant in Bontang, East Kalimantan, headed for Bali.
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From exploration to production
Our activities are focused on the area off the coast of the East Kalimantan province, the area off the coast of the island of Sumatra and the onshore/offshore areas of West Timor and West Papua, with a total of 13 exploration blocks. Our exploration and production activities are governed by Production Sharing Agreements (PSAs). In December 2019, Eni divested to Neptune Energy Group Limited a 20% interest in the East Sepinggan block. Eni will retain a 65% interest and the operatorship.
The majority of production derives from the Eni-operated Muara Bakau exploration block (Eni 55%), where the Jangkrik gas field is located. Production comes from twelve subsea wells connected to the Floating Production Unit (FPU). After being processed by the FPU, the gas produced is transported via a pipeline to the onshore plant connected to the East Kalimantan transportation system, and is then taken to the Bontang liquefaction plant. The gas is sold under a series of long-term contracts, both to the Indonesian state company Pertamina and to Eni itself, which markets it in Asia. The development activities focused on the Merakes offshore gas project in the Eni-operated East Sepinggan exploration block (Eni 85%).
In December 2018, the development plan was approved by the country's authorities. The project entails the drilling of 5 subsea wells that will be connected to the floating production unit (FPU), where the gas from the Jangkrik production field will also be stored, and from which it will be discharged. After being processed by the FPU, the gas will be transported via a pipeline to the onshore plant connected to the East Kalimantan transportation system, and then taken to the Bontang liquefaction plant or sold on the domestic spot market. Start-up is scheduled for 2020.
The exploratory activities were successful, resulting in the discovery of Merakes East in the Eni-operated East Sepinggan block located off the coast of the country. In May 2018, we won a 100% stake in the East Ganal exploration block, in the deep waters of the Kutei Basin, near the Muara Bakau block. In 2019, Eni was awarded the West Ganal exploration block (Eni operator with a 40% interest) located in the deep water Kutei Basin, effective since January 1, 2020. The block includes the Maha discovery and other exploration potential areas, where development activities will be supported by the synergies with existing facilities.