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Eni SpA E, the Italian energy giant, has announced the initiation of gas production from the Merakes East field in the East Sepinggan block, located offshore Indonesia in the Kutei Basin. The development marks a milestone in Eni’s strategy to strengthen its foothold in Southeast Asia's energy market, particularly in Indonesia’s growing gas sector.
The Merakes East field, operated by Eni with an 85% stake, will add up to 100 million standard cubic feet per day (MMSCFD) of gas, equivalent to approximately 18,000 barrels of oil equivalent per day (boepd), to the company’s production. The project is situated in deep water, around 1,600 meters below sea level and 10 kilometers east of the existing Merakes field.
E Advances Fast-track Development to Boost LNG
In line with Eni’s fast-track development strategy, Merakes East was brought online just two years after its final investment decision (FID). The field is tied back to the Jangkrik Floating Production Unit (FPU) via subsea connection. Following initial processing at the Jangkrik FPU, the gas is sent via pipeline to the Bontang liquefaction plant to supply the domestic market.
This strategic integration enables Eni to optimize existing infrastructure while also supporting domestic energy needs and boosting LNG exports. The increased utilization of the Bontang LNG plant is expected to benefit significantly from the additional volumes coming online.
Kutei Basin Expansion Anchors Eni’s Regional Leadership
Merakes East is part of a broader expansion plan by Eni in Indonesia, where the company has become the leading operator in the prolific Kutei Basin. It follows the development of the Maha field and the recent approval of Plans of Development for the Northern Hub and Gendalo-Gendang projects. Collectively, these developments position Eni to produce up to 2 billion cubic feet per day (BCFD) of gas and 90,000 barrels per day of condensates once all fields are online.
The success of these projects is largely attributed to the strong collaboration between Eni and SKK Migas, Indonesia’s upstream regulator. The partnership aims to boost local content, maximize domestic energy supply, and enhance the efficiency of LNG production and export.
In addition to expanding production, Eni is pursuing further growth in Southeast Asia through a proposed joint venture with Malaysia’s PETRONAS. The planned holding company would oversee select upstream assets in Indonesia and Malaysia, consolidating approximately 3 billion barrels of oil equivalent in reserves and an additional 10 billion boe of exploration upside. The move is part of Eni’s ambition to emerge as a major LNG player in the region.