Indonesia approves Eni's Geng Nord gas project development plan

SKK Migas, Indonesia's upstream oil-and-gas regulator, said Friday that Indonesia had approved the plan of developments (POD) of the first phase for Geng North, an Italian Eni gas field in the Makassar Strait.

SKK Migas confirmed that the POD approval included development of Gehem. Gehem, located near the Geng North gas field, is part of Indonesia Deepwater Development project that Eni acquired last year from Chevron.

SKK Migas stated that the project will bring in an estimated total of $17,49 billion through investment and operating spending.

Indonesia wants to speed up a number gas projects after major discoveries, and before the energy shift away from fossil fuels impacts both funding and demand.

Hudi Suryodipuro, spokesperson for SKK Migas, said: "We all must be committed to ensuring that this national project does not get delayed. If possible, it could even be accelerated in order to strengthen our oil-and-gas supplies."

Eni announced it last year

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Geng North-1's exploration well contains 5 trillion cubic feet of gas. Reporting by Bernadette Munthe and Fransiska Nanangoy, Editing by John Mair

(source: Reuters)