Indonesia eyes energy boost as Italy’s Eni plans $10 billion offshore gas development

Indonesia’s Minister of Energy and Mineral Resources, Bahlil Lahadalia, announced that Italian multinational energy company Eni is poised to inject $10 billion (approximately Rp150 trillion) into the development of offshore natural gas fields in East Kalimantan province.

Eni, headquartered in Rome and founded in 1953, is one of Europe’s largest oil and gas companies, with operations spanning more than 70 countries globally. The company specializes in the exploration, production, and development of hydrocarbons, both onshore and offshore, Caliber.Az reports, citing Indonesian media.

Speaking on July 19, Minister Lahadalia detailed that Eni’s substantial capital will target the development of the Makassar Strait’s offshore gas reserves, specifically in the Jangkrik and Merakes blocks. Production from these adjacent fields is anticipated to commence in 2027, with the output expected to significantly bolster Indonesia’s domestic gas supply while also meeting export demands.

The minister acknowledged ongoing global economic challenges, including geopolitical tensions and conflicts that continue to disrupt markets worldwide. Against this backdrop, Lahadalia emphasized the strategic importance of attracting foreign investment, especially from a major European player, underscoring the positive impact on Indonesia’s economic resilience.

He also highlighted President Prabowo Subianto’s diplomatic efforts, which successfully reduced US import tariffs on Indonesian products from 32 percent to 19 percent—a move expected to further stimulate economic growth.

In addition to economic benefits, the minister stressed that Eni’s investment will generate substantial employment opportunities at both local and national levels. Moreover, the Indonesian government intends to encourage Eni to allocate a portion of its participating interest (PI) in the project to the East Kalimantan provincial government, thereby increasing the region’s share of the generated revenue.

By Vafa Guliyeva