Italy’s oil and gas integrated Eni SpA (E) has successfully appraised the Jangkrik gas discovery in offshore Indonesia. Located about 70 kilometers from the coast, the well encountered more than 80 meters of net gas pay in excellent quality reservoir. The well produced gas at a tubing constrained rate of 17.5 million cubic feet per day (MMcf/d) during the production test.
 
Eni (the operator) and GDF Suez jointly control the block with a 55% and 45% interest, respectively. They will proceed to assess technical and commercial viability for further development of the field.
 
The company conducts its major exploration and production (E&P) activities for hydrocarbons in Italy, Croatia, North Africa, West Africa, the North Sea, the Gulf of Mexico, the Middle East, the Caspian Sea, Australia, Latin America and the Far East.
 
Eni holds working interests in twelve permits in Indonesia, out of which it currently operates six. A key part of Eni’s long-term business strategy relates to its focus on playing a leading role in the natural gas market.
 
Eni plans to invest approximately $72 billion in the 2010 to 2013 time frame, an increase of 8% from the 2009 to 2012 plan. This increase was driven by new projects in Iraq and Venezuela as well as Indonesia in the E&P space.
 
With new fields continuously coming online across Eni’s footprint and production ramp-up in the existing fields, its near-term upstream production prospect is gaining traction with a strong strategic rationale. We are currently Neutral on Eni.
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