Italian oil company Eni has received an approval of the plan of development (POD) for the Merakes field located in the East Sepinggan PSC in the Makassar Strait, offshore East Kalimantan, Indonesia.
Eni said on Wednesday that the Indonesian Minister of Energy has granted the approval, just three months after the submission of the plan and less than eleven months after Eni started production from its deep water operated asset in Indonesia, the Jangkrik fields complex in the Muara Bakau PSC.
The Merakes field that is estimated to hold about 2 trillion cubic feet of lean gas in place is located in 1500 meters water depth, 35 kms South West of the Jangkrik Floating Production Unit (FPU). The field has been discovered by the Merakes 1 well in 2014 which encountered lean gas in world class reservoir quality sands of Pliocene age.
In January 2017, Eni successfully drilled and tested the appraisal well Merakes 2, recording excellent gas deliverability.
According to the company, the proximity of Merakes discovery to the Jangkrik FPU will allow Eni to maximize the synergies with existing nearby infrastructures as well as to reduce costs and time of the execution of this second deep water development in Indonesia.
The POD approved on Tuesday foresees the drilling and completion of six subsea wells and the construction and installation of subsea systems and pipelines which will be connected to the Jangkrik FPU. The gas will then be shipped through the existing pipelines from the Jangkrik FPU to the Bontang LNG Processing facility operated by PT Badak in the East Kalimantan.
Merakes production, likewise that of Jangkrik will contribute to the life extension of the Bontang LNG facilities, one of the world most reliable LNG processing plant which supplies LNG to both the domestic and export markets.
Eni’s CEO, Claudio Descalzi, said: “Today’s approval of the Merakes POD is a milestone for the development of our most recent discovery in the Kutei Basin. It is a fundamental step to progress towards the Final Investment Decision of the project. Merakes is another outcome of the Eni “near field” exploration and appraisal strategy. We are proud of Eni’s partnership with Indonesia, a key country in the company’s global strategies.”
Eni is the operator of East Sepinggan PSC through its subsidiary Eni East Sepinggan Limited which holds 85% Participating Interest while Pertamina Hulu Energy holds the remaining 15% interest.