Eni, Pertamina sign LNG deal

Eni, together with its partners Engie (formerly GDF Suez) and Saka Energi Muara Bakau, signed two agreements with PT Pertamina for the purchase and sale of LNG coming from Jangkrik field development project.

Under these sale and purchase agreements, Pertamina will purchase 1.4 million tonnes per annum of LNG starting from 2017, Eni revealed in a statement.

“The signing of these agreements represents a key milestone for the Jangkrik field development project. It is one of the first deep-water gas projects in Indonesia being developed under a fast-track scheme,” Eni’s CEO, Claudio Descalzi, said.

The Jangkrik field development project which consists of Jangkrik and Jangkrik North-East fields requires the drilling of production wells to be linked to a floating production unit for gas and condensate treatment, and subsea pipeline laying for transportation to the Bontang terminal. Production start-up is expected in 2017.

The Jangkrik fields, discovered in the Muara Bakau block in 2009 and 2011, are located at a depth of 400 meters in the Makassar Strait, approximately 100 km east of Balikpapan.

Eni is the operator of the block with 55% of working interest, whereas the other JV partners are GDF Suez Exploration Indonesia, a subsidiary of Engie, with 33.33% stake and Saka Energi Muara Bakau with 11.66% stake.

Image: GDF Suez E&P