Eni launches key tender for Kutei North Hub gas project in Indonesia

Italian company Eni has initiated a major engineering, procurement, construction and installation (EPCI) tender for its $17.49 billion Kutei North Hub gas project offshore Indonesia.

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Italian energy company Eni has issued a tender for an engineering, procurement, construction and installation (EPCI) contract related to its Kutei North Hub gas project, located offshore Indonesia. The project, valued at $17.49 billion, aims to develop the Geng North and Gehem fields, located in the North Ganal and Rapak blocks respectively.

The tender covers the transportation and installation of key infrastructure for the Kutei North Hub project. Eni is expected to make a final investment decision on the project later this year.

In August 2024, Indonesian authorities approved the development plans for the Geng North and Gehem fields, along with the Gendalo and Gandang fields. These approvals included a 20-year extension of the Ganal and Rapak licences, enabling Eni to establish significant gas and condensate production in the East Kalimantan region.

Planned processing capacities

The development of the Kutei North Hub includes the deployment of a floating production, storage and offloading unit (FPSO) with a processing capacity of approximately 1 billion cubic feet of gas per day and 80,000 barrels of condensate per day. The gas will be processed on board the FPSO and then transported to the Santan onshore terminal and the East Kalimantan pipeline network. Part of the gas will be liquefied at the Bontang liquefied natural gas (LNG) facility, with the remainder supplied to the domestic market.

Equity distribution and timeline

Eni holds an 83.3% interest in the North Ganal block, operating the Geng North field, with Agra Energi Pte Ltd holding the remaining 16.7%. In the Ganal and Rapak blocks, Eni owns an 82% interest, with Tip Top holding the remaining 18%.

Production from the Geng North field is scheduled to begin by the end of 2027, making it one of the fastest developments undertaken in Indonesia.

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