Finance
Italy's Eni Reaches Final Investment Decision for Indonesia Gas Projects
Published by Global Banking & Finance Review®
Posted on March 18, 2026
2 min readLast updated: March 18, 2026
Quick Summary
Italy’s Eni has given the green light for offshore Indonesia’s Geng North and Gendalo‑Gendang gas developments, aiming for 2 bscfd of gas and 90,000 bpd condensate by 2029.
Eni Approves Final Investment for Major Indonesia Gas Projects in Kutei Basin
Key Developments in Eni's Indonesia Gas Projects
JAKARTA, March 18 (Reuters) - Italy's ENI said it has reached a final investment decision for the development of the Geng North and Gendalo-Gendang gas projects, located offshore in the Kutei Basin in Indonesia's East Kalimantan province, within the Makassar Strait. Here are some of the key points:
Final Investment Decision and Project Timeline
- Eni said in a statement late on Tuesday that the final investment decision (FID) was reached eighteen months after the projects were approved in 2024, "confirming the fast pace of the development of its deep-water gas projects."
Development Plans and Drilling Operations
- The development plans for the Gendalo-Gendang fields include the drilling of seven producing wells, with another 16 to be drilled at the Geng North and Gehem Fields, the company said.
Cooperation and Strategic Partnerships
- "This is a key milestone that confirms the great cooperation between Eni and the Indonesian government. Eni will provide material volumes of gas and LNG to support Indonesia's long-term energy security needs," Eni CEO Claudio Descalzi said.
Production Targets and Completion Timeline
- Once the two projects are completed by 2029, they will reach a peak production rate of 2 billion standard cubic feet per day (bscfd) of natural gas and 90,000 barrels of condensate per day, the company said.
Joint Venture Management
- The projects will be managed by a new joint venture formed by Eni and Malaysian state energy firm Petroliam Nasional Bhd (Petronas) after both companies signed an agreement last year.
(Reporting by Ananda Teresia, Bernadette Christina; Editing by David Stanway)
Key Takeaways
- •Final Investment Decision (FID) follows 2024 approval of development plans in Indonesia’s Kutei Basin.
- •Project will involve drilling 7 wells in Gendalo‑Gendang and 16 at Geng North and Gehem, targeting peak output by 2029.
- •Eni and Petronas formed a joint venture for the projects, emphasizing partnership, energy security and integration with Bontang LNG and existing assets.
Frequently Asked Questions about Italy's Eni reaches final investment decision for Indonesia gas projects
1What gas projects has Eni approved in Indonesia?
Eni approved the development of the Geng North and Gendalo-Gendang gas projects located offshore in the Kutei Basin, East Kalimantan.
2When will the Indonesia gas projects reach peak production?
The projects are expected to reach peak production by 2029.
3What is the expected peak output of Eni's gas projects in Indonesia?
Peak production is forecasted at 2 billion standard cubic feet per day of natural gas and 90,000 barrels of condensate per day.
4Who is Eni partnering with for these gas developments?
Eni is forming a joint venture with Malaysian state energy firm Petronas for these projects.
5How will these projects impact Indonesia's energy security?
The projects aim to provide significant volumes of gas and LNG to support Indonesia's long-term energy security needs.
