Italian energy giant Eni’s major new gas find off Indonesia could triple its production by 2028, boosting national energy security amid global price pressures.
JAKARTA: Italian energy giant Eni has announced a “major” discovery of natural gas off the coast of Indonesia, which the government says will triple the European company’s production in the country by 2028.
Preliminary estimates indicate the site, located some 70 kilometres off the coast of East Kalimantan province, holds about 5 trillion cubic feet of gas and 300 million barrels of condensate, a liquid hydrocarbon.
The new find “unlocks significant new volumes for domestic and international markets”, according to a statement from Eni issued late Monday.
Indonesia’s Energy and Mineral Resources Minister Bahlil Lahadalia described the discovery as “giant”, stating it could boost Eni’s peak production to 2,000 million standard cubic feet per day by 2028 and to 3,000 million standard cubic feet per day two years later, up from between 600 and 700 million standard cubic feet per day currently.
“This is a giant discovery, and in addition to gas, by 2028 we will also be producing roughly 90,000 barrels of condensate, which could increase further to 150,000 barrels in 2029–2030,” Bahlil said.
The minister added that higher condensate production would likely reduce Indonesia’s oil imports, according to a government statement.
The discovery comes as Indonesia, like many nations, faces pressure from soaring global energy prices following the outbreak of war in the Middle East.
Southeast Asia’s largest economy, where fuel is heavily subsidised, is an oil producer but remains a net importer, having recently announced fuel rationing and mandated civil servants work from home every Friday to conserve energy stocks.
Last week, President Prabowo Subianto met Russian counterpart Vladimir Putin at the Kremlin, where Jakarta said a deal on oil procurement was being finalised, with Foreign Ministry spokesman Vahd Nabyl Achmad Mulachela stating “there is no specific number that we have, but this is going to be long term for energy security”.
Prabowo subsequently met French President Emmanuel Macron, where the leaders agreed on cooperation in “energy transition and the development of new and renewable energy”, according to Jakarta.
The government has vowed not to increase the price of subsidised fuel this year, even though its subsidy budget was calculated on an oil price of USD 70 per barrel while crude now sits at around USD 100.
Minister Bahlil said in March that about 30% of Indonesia’s liquefied petroleum gas imports came from the Middle East and that the government would seek alternative suppliers.
According to the latest International Energy Agency figures for Indonesia, natural gas made up a 15.6% share of the country’s energy supply and 12.9% of electricity generation in 2023.
Bahlil said the latest Eni find “proves Indonesia still has significant opportunities to optimise its oil and gas potential as a pillar of national energy security and efforts to achieve energy self-sufficiency”.
