ENI's Investment in Indonesia Could Exceed IDR 250 Trillion

OIL AND GAS - JAKARTA. The Italian oil and gas company, ENI, is investing US$ 16 billion or equivalent to IDR 250 trillion (exchange rate IDR 15,650 per US dollar) in several upstream oil and gas projects in Indonesia. 

In the future, this investment amount could increase along with the cooperation between ENI and Indonesia in the decarbonization sector. 

The Head of the Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas), Dwi Soetjipto, said that the investment value comes from several projects that ENI is currently working on. 

Among others, from the Jangkrik Field to maintain the existing production rate. In this gas field, a floating processing unit (FPU) is also operated, connecting 10 underwater wells.

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“Then the Maha-2 development project, Geng North, the Indonesia Deepwater Development (IDD) development project, and additional explorations,” said Dwi when met at the Ministry of Energy and Mineral Resources Building, on Friday (2/2). 

Dwi revealed that ENI still sees a large potential for gas in Indonesia, especially in Geng North and IDD, so the Italian company has prepared a long-term plan. 

“So now there are 4 projects (being worked on by ENI) plus more exploration, of course, it gives confidence that the exploration is optimistic in finding new reserves. So there is an additional investment again,” he explained. 

In the future, ENI will not only invest in the upstream oil and gas sector but will also support the decarbonization program in Indonesia. 

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On Friday (2/2), the Ministry of Energy and Mineral Resources (ESDM) together with ENI signed a Memorandum of Understanding (MoU) regarding decarbonization cooperation. This signing is a follow-up to the Ministry of ESDM's visit to the ENI office in Italy on January 21-24, 2024.

“They will bring electric stoves to be assisted in Indonesia, then they will also build waste to energy, so (the management of) their waste will be practiced in Indonesia,” said Dwi. 

There is also cooperation in the agriculture sector where there is potential to process rubber ore into energy. 

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Dwi did not deny, that the cooperation between Indonesia and ENI will also be expanded to the Carbon Capture Storage (CCS)/Carbon Capture Storage and Utilization (CCUS) business. 

“This CCS/CCUS project can anticipate the carbon trading business in the future,” said Dwi. 

However, the value of cooperation in this decarbonization sector cannot yet be disclosed him because it is still in the study stage.