-- Eni (ENI.MI) is considering accelerated development options after declaring a "giant" gas discovery at its Geliga‑1 exploration well offshore Indonesia, according to a Monday release.
Located in Eni's 82%-owned Ganal block in the Kutei Basin, the well was drilled to a total depth of 5,100 meters. Based on initial estimates, the Italian energy company found in-place resources of 5 trillion cubic feet of gas and 300 million barrels of condensate in the Miocene interval.
Eni scheduled a drill stem test to gauge the productivity of the reservoir. Given Geliga‑1's proximity to existing and planned infrastructures, Eni anticipates potential synergies in terms of time‑to‑market and cost optimization.
Additionally, the latest finding sits next to the Gula gas discovery, which is not yet developed but has 2 tcf of gas and 75 million barrels of condensate in place. Combined, the Geliga and Gula resources offer the possibility of a third production hub in the Kutei Basin with the capacity to produce 1 billion standard cubic feet per day of gas and 80,000 barrels per day of condensate, according to preliminary evaluations.
Moving ahead, the Geliga discovery boosts the value of its planned valorization of a 10% stake in the Eni Indonesia portfolio to a third party in 2026. Besides the sale, the Ganal production sharing contract is part of a 19-block portfolio that will be transferred to Searah, a company jointly controlled by Eni and and Malaysia-based oil giant Petronas.
In the Kutei Basin, Eni will drill another well in 2026 and two wells in 2027, after completing drilling of four other exploration wells over the past six months.
Eni shares gained over 3% in Milan, Italy, at midday Monday.