Italian Energy Giant Eni Greenlights $15 Billion Deepwater Gas Blitz in Borneo

JAKARTA, Investortrust.id — The deep waters of the Makassar Strait are poised to become the engine room of Indonesia’s energy future. Italian energy major Eni has reached a Final Investment Decision (FID) for the Gendalo-Gandang and Geng North-Gehem gas projects, a $15 billion (Rp 254 trillion) commitment that signals a massive vote of confidence in the archipelago's upstream sector.

The announcement, made Wednesday, marks the culmination of an accelerated 18-bit development cycle following the approval of the initial plans in 2024. By fast-tracking these assets, Eni and the Indonesian government aim to bring a combined resource of 10 trillion cubic feet of gas and 550 million barrels of condensate to market by 2028, bolstering domestic supply and revitalizing the nation's liquefied natural gas (LNG) export credentials.

This investment serves as a critical firewall against Indonesia’s looming energy headwinds. As legacy fields decline, the push into ultra-deepwater—reaching depths of up to 6,500 feet—represents the next frontier for Jakarta. For the global energy market, Eni’s move illustrates a strategic shift toward "integrated hubs," where new discoveries are plugged into existing infrastructure like the Bontang LNG plant to slash costs and carbon intensity while maximizing output.

“This investment decision is a vital step in supporting the increase in national gas production while strengthening Indonesia’s energy security,” said Djoko Siswanto, Head of the Upstream Oil and Gas Regulatory Task Force (SKK Migas). “We will continue to push for the acceleration of such strategic projects to provide maximum benefits for the state and the community.”

The Technical Vanguard

The development is split into two massive sub-sea complexes. The Gendalo and Gandang fields, sitting at depths of 3,300 to 5,900 feet, will utilize seven production wells tied back to the existing Jangkrik FPU.

Meanwhile, the Geng North-Gehem project—Eni’s recent "trophy" discovery—will involve 16 production wells at depths reaching 6,500 feet. These will be linked to a brand-new floating production facility capable of processing more than 1 billion cubic feet of gas and 90,000 barrels of condensate per day.

The Synergy Model

A key driver of the project's feasibility is its "plug-and-play" philosophy. Rather than building entirely new onshore terminals, the gas will be piped to the Bontang LNG Plant. The project includes the reactivation of "Train F," a liquefaction unit that has been idle, allowing for immediate commercialization for both the domestic grid and international buyers.

The condensate—a high-value light oil—will be stored in offshore facilities before being ferried by tankers. This integrated approach has allowed Eni to bypass the technical and financial complications that have stalled other deepwater projects in the region for decades.

Regional Powerhouse: The NewCo Alliance

The project also paves the way for a deeper regional partnership. Eni is finalizing the formation of "NewCo," a collaborative business entity with Malaysia’s state energy firm, Petronas. This alliance aims to consolidate assets in the Kutai Basin, targeting a massive combined production of over 500,000 barrels of oil equivalent per day by 2029.

Beyond the energy metrics, the $15 billion price tag is expected to spark a local economic boom. SKK Migas anticipates the creation of thousands of jobs during the peak construction phase, providing a significant tailwind for the East Kalimantan economy. Eni, which has been a fixture in Indonesia since 2001, has already begun the procurement process for "long lead items," moving swiftly from boardroom approval to industrial execution.