Eni, together with its partners ENGIE (formerly GDF SUEZ) and Saka Energi Muara Bakau, signed today two agreements with PT Pertamina (PERSERO) for the purchase and sale of liquefied natural gas (LNG) coming from Jangkrik Fields Development Project. Under such Sale & Purchase Agreements, Pertamina will purchase 1.4 million tonnes per annum of LNG starting from 2017.

"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, and confirms Eni’s commitment in supplying gas for the development of the Indonesian domestic market. I’m very pleased with the strong and fruitful relationship with the Indonesian Authorities, Pertamina and our Joint Ventures Partners in Jangkrik", Eni’s CEO, Claudio Descalzi, said.

The Jangkrik Fields 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 Bontag 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, formerly GDF SUEZ, with 33.334% stake and Saka Energi Muara Bakau with 11.666% stake.

Eni has been operating in Indonesia since 2001 and currently holds a large portfolio of exploration, production and development assets which have an increasing importance in contributing to the overall growth of the company. Eni’s average equity production in the Country amounts to 17,000 barrels of oil equivalent per day.

About ENI

Eni is an integrated company that operates across the entire energy chain, employing some 78,000 people in 90 countries around the world. Scientific research and technological innovation are at the heart of its strategies for sustainable development.
Eni’s excellent portfolio of conventional oil assets with competitive costs and the strong resource base with options for anticipated monetization ensure a robust value generation at Eni’s upstream activity. The vertical integration provided by the large presence in the gas and lng markets, and the know-how in refining and chemical sectors enable the company to capture synergies and catch joint opportunities and projects in the marketplace.

About Pertamina

Pertamina (PERSERO) as a state-owned company to carry out integrated business core in oil, gas, renewable and new energy based on strong commercial principles both inside and outside the country, Pertamina strives to provide the best and a real contribution to the welfare of the nation in utilizing every potential of Indonesia

See the site of Bontang LNG terminal