Italian energy giant Eni has cleared the investment plan for the Merakes project in the East Sepinggan PSC (Makassar Strait, East Kalimantan) in Indonesia, following the approval received by the Minister of Energy of Indonesia in early December 2018. The company plans to start gas production in 2021 at an initial rate of 155 mcf/d (4.4 mcm/d) and then raise to a peak output of 391 mcf/d (11 mcm/d). Its gas production will be conveyed to the Bontang LNG facility using also all the other existing facilities of the neighbouring Jangkrik field as well as the East Kalimantan transportation network.
The potential of the Merakes gas field is estimated at 2 Tcf (56.6 bcm) and the field is located just 35 km south of the Jangkrik deep water gas field, whose production started in May 2017. The proximity of the Merakes discovery to the Jangkrik FPU will allow Eni to maximize the synergies with existing infrastructures and to reduce costs and time of the execution of this second deep water development in Indonesia.
The field will be operated by Eni with a 85% stake while Indonesia's state-held company Pertamina holds the remaining 15%. Eni has been operating in Indonesia since 2001, with an average equity production of 17,000 boe/d. It holds a 85% stake in the East Sepinggan PSC, with the remainder owned by Indonesia's oil company Pertamina.