Eni Discovers 5 Trillion Cubic Feet of Gas in Indonesia's Kutei Basin

Strategic Implications for Indonesia and Eni

Indonesia has been grappling with the dual challenge of meeting rising domestic gas demand while maintaining its role as a key LNG exporter. The Geliga discovery could help balance these priorities by providing additional supply for both local consumption and international markets. The country has been working to maximize the value of its mature infrastructure, and the new find aligns with that strategy.

The Ganal production sharing contract, which includes the Geliga discovery, is set to be folded into Searah, a joint venture between Eni and Malaysia's Petronas announced in November 2025. Searah aims to combine assets and technical expertise across Indonesia and Malaysia, targeting the development of around 3 billion barrels of oil equivalent of discovered resources. The partnership is expected to enhance exploration and production efficiency in the region.

Eni is also pursuing a separate sale of a 10% stake in its Indonesia portfolio, signaling a strategic shift as it focuses on high-potential assets like Geliga. The North Hub, a key component of Eni's plans, is designed around a new floating production, storage, and offloading (FPSO) vessel capable of handling 1 billion cubic feet per day of gas and 90,000 barrels per day of condensate. This infrastructure will tie into the Bontang LNG plant, further integrating the new resources into Indonesia's energy grid.

The discovery underscores the continued potential of the Kutei Basin, a historically prolific region for oil and gas. Eni's success at Geliga could spur further exploration and investment in the area, reinforcing Indonesia's position as a major player in the global energy market.