Eni announces production start-up from Merakes East field, offshore Indonesia

Eni has commenced gas production from the Merakes East field, located in the Kutei Basin offshore Indonesia. The field, part of the East Sepinggan block (Eni 85%, operator), is expected to deliver up to 100 million standard cubic feet per day (MMSCFD) of gas, equivalent to approximately 18,000 barrels of oil equivalent per day (boepd), contributing significantly to Eni’s output.

Situated at a water depth of 1,600 meters and about 10 kilometers east of the existing Merakes Field, Merakes East is connected via subsea infrastructure to Eni’s Jangkrik Floating Production Unit (FPU), located approximately 50 kilometers away. This development marks another success in Eni’s fast-track approach, as production began just two years after the Final Investment Decision (FID). After initial processing at the FPU, the gas is transported through a pipeline network to serve domestic needs and supply the Bontang LNG plant, which supports both local consumption and exports.

The start-up of Merakes East represents a strategic milestone in Eni’s broader plan to unlock the potential of substantial gas reserves in Indonesia’s Kutei Basin. It complements ongoing developments such as the Maha field and the recently approved development plans for the Northern Hub and Gendalo-Gandang. This achievement is a result of strong collaboration between Eni and Indonesia’s upstream regulator, SKK Migas, and aligns with efforts to maximize local content and optimize capacity utilization at the Bontang LNG facility while ensuring sufficient supply for domestic use.

In recent years, following several successful exploration campaigns and asset acquisitions, Eni has established itself as the leading operator in the Kutei Basin and a major player in Indonesia’s gas sector. With future production from the Northern Hub and Gendalo-Gandang, Eni aims to reach up to 2 billion cubic feet per day (BCFD) of gas and 90,000 barrels per day (bopd) of condensate.

Additionally, Eni recently announced discussions with PETRONAS to create a joint venture that will manage select upstream assets across Indonesia and Malaysia. This partnership is expected to unlock significant synergies and enhance both companies’ positions in the regional LNG market, combining reserves of around 3 billion barrels of oil equivalent with an estimated 10 billion barrels in potential exploration upside.

Eni has been active in Indonesia since 2001 and currently holds a broad portfolio of assets covering exploration, development, and production, with current production reaching approximately 700 MMSCFD in East Kalimantan.