Eni's Geliga-1 discovery has strong test results off Indonesia

Eni, the Italian energy company, announced on Thursday that its Geliga-1 gas find?offshore Indonesia had produced strong test results. These confirmed high reservoir productivity as well as a potential for fast-track development.

Eni holds a 82% stake in the discovery, which is located within Ganal PSC. Sinopec, a Chinese company, holds the remaining 18%.

The Ganal PSC will be included in a portfolio consisting of?19 blocks, 14 in Indonesia and 5 in Malaysia. These blocks will be transferred to Searah - the company controlled jointly by Eni and Malaysian Petronas.

Searah will be able to combine its assets, technical know-how, and financial capability to support the growth of Southeast Asia.

The 'business plan' of the company includes the exploitation of 3 billion barrels equivalent to oil (boe) discovered resources as well as the unlocked exploration potential.

A 10% stake in Eni Indonesia's portfolio, which was withheld in the Searah deal, is being sold to an investor and should be completed in 2026.

Eni stated in a press release that the Geliga discovery added to this sale's value.

Eni stated that based on the test results, it is estimated that the Geliga-1 will produce a "sustainable" rate of 'approximately 200,000 standard cubic feet of gas per day and approximately 10,000 barrels of condensate per day.

Barclays, in a client report, said: "With energy security becoming a priority in Southeast Asia we see the stake in Geliga-1 as a strategic opportunity for Eni moving forward."

Eni has said that a plan of development will be presented to the Indonesian government in the next few weeks. Francesca Landini, Giulia Segriti and Joe Bavier (Reporting)

(source: Reuters)