Italian major Eni has been awarded new exploration acreage in Indonesia’s Kutei Basin, one of the country’s most significant gas-bearing regions. The block, located offshore East Kalimantan, is considered highly prospective based on recent seismic surveys. This move reinforces Eni’s long-term strategy to expand its gas portfolio in Southeast Asia, leveraging the basin’s proximity to the Bontang LNG terminal.
Eni already operates several major projects in the Kutei Basin, including the under-development Ganal and West Ganal fields. The new acreage will allow the company to further delineate the basin’s potential and secure additional feedstock for the Bontang LNG facility. Bontang is a key LNG export hub operated by Pertamina and has been seeking new gas sources to maintain utilization rates.
The acquisition is part of Eni’s broader focus on Indonesia, where it has been one of the most active international oil companies. The company has a joint venture with Petronas through Searah Limited, which holds interests in the deepwater Kutei blocks. This partnership has enabled Eni to share risk and leverage Petronas’ regional expertise.
Industry analysts note that securing new exploration acreage is critical for Indonesia to reverse declining oil and gas production. The country has struggled to attract upstream investment in recent years due to regulatory hurdles and competition from other basins globally. However, the Kutei Basin’s gas-rich potential and existing infrastructure make it a relatively safe bet for operators like Eni.
The announcement comes amid a broader push by the Indonesian government to boost exploration activity. The government has introduced fiscal incentives and streamlined permitting processes to encourage drilling. Eni’s commitment to the basin signals confidence in Indonesia’s upstream sector, despite challenges such as project delays and cost overruns.
Looking ahead, Eni is expected to drill exploration wells on the new block within the next two years. Success could lead to additional development phases and potentially tie into the Bontang LNG expansion plans. This move also positions Eni to compete with other majors, such as Chevron and Shell, which are also eyeing Indonesian acreage.
Key entities: Eni, Petronas, Searah Limited, Bontang LNG, Kutei Basin, Indonesia
Source: upstreamonline.com · 2026-09-24 · https://www.upstreamonline.com/exploration/eni-lands-indonesia-exploration-acreage-in-key-gas-basin/2-1-2048954
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