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Italy’s Eni will fast-track the development of the Geng North deepwater gas field off the Indonesian coast, with first production planned for 2027, Upstream has reported, noting the field contains an estimated 5 trillion cubic feet of wet gas.
News of the discovery of the field broke in early October. At the time, the company said it would study its options for fast-tracking the development of the field.
“The ongoing exploration campaign, along with the recent acquisitions, is in line with Eni’s energy transition strategy to progressively shift its portfolio mix towards gas and LNG, targeting 60% in 2030, and to increase its LNG equity portfolio,” the company said.
Eni plans to boost the share of LNG in its operations to 60% by 2030 and expand its LNG portfolio.
The Geng North field is located next to already operational wells, in which Eni recently took over the stakes of Chevron. The deal was announced in July and involved three majority stakes in fields located in the same basin as Geng North—the Kutei Basin.
“Thanks to its location and significant size, the discovery has the potential to contribute substantially to the creation of a new [gas] production hub,” the supermajor said.
Fast-tracking the development of the field in Indonesia comes amid the continued tightness of global gas markets, aggravated recently by the war between Israel and Hamas, which has so far led to the shutdown of production at one of Israel’s biggest gas fields, Tamar.
Gas from Tamar was sent to Egypt, where it was liquefied and sold on global markets. Tamar, along with Leviathan and gas fields in Egypt made the foundation of plans for turning the East Mediterranean into a new global gas hub, especially after the European Union lost its access to most Russian gas.
By Irina Slav for Oilprice.com
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Irina is a writer for Oilprice.com with over a decade of experience writing on the oil and gas industry.