Full Breakdown
Eni Discovers Major Gas Reserves Off Borneo, Indonesia
12/9/2025, 8:51:53 PM
Significant Gas Discovery in Kutei Basin
On December 9, 2025, Italy's Eni announced a substantial gas discovery at the Konta-1 exploration well, located approximately 50 kilometers off the eastern coast of Borneo, Indonesia. Preliminary estimates indicate that the well contains around 600 billion cubic feet (Bcf) of gas across four reservoirs, with the potential to exceed 1 trillion cubic feet (TCF). The Konta-1 well, drilled to a depth of 4,575 meters in 570 meters of water, encountered gas in sandstone reservoirs of Miocene age, which exhibited favorable petrophysical properties.
Exploration and Development Plans
The discovery is part of the Muara Bakau production sharing contract (PSC), where Eni holds an 88.33% participating interest, while Indonesia's Saka Energi owns the remaining 11.66%. Eni plans to continue its exploration efforts in the Kutei Basin, with a campaign that includes drilling four additional wells in 2026. The proximity of the Konta discovery to existing facilities is expected to facilitate a fast-track development approach, leveraging synergies with current projects.
Joint Venture with Petronas
Eni's operations in the region are further strengthened by a joint venture with Malaysia's state energy company, Petronas. This partnership, established through a new company (NewCo), will manage a portfolio of 19 exploration blocks—14 in Indonesia and five in Malaysia. The joint venture aims to invest over $15 billion in the next five years, focusing on developing eight new projects and drilling 15 exploration wells, with the goal of unlocking approximately 10 billion barrels of oil equivalent (boe) of unrisked exploration potential.
Official Statements & Responses
Eni emphasized the significance of the Konta discovery, stating, “The discovery confirms the effectiveness of Eni’s near-field exploration strategy in the Kutei Basin, aimed at creating value through its deep knowledge of geological plays and the application of advanced geophysical technologies.” The company also noted that the discovery enhances confidence in its ongoing exploration drilling campaign.
Criticism & Opposition
While the announcement has been met with optimism regarding energy development in Southeast Asia, some environmental groups have raised concerns about the potential ecological impacts of increased drilling activities in the region. Critics argue that the focus on fossil fuel exploration may hinder progress toward renewable energy initiatives.
What's Next
Eni is expected to proceed with its planned drilling campaign in 2026, which will include further exploration wells in the Kutei Basin. The company is also working on a new production hub in the area, with plans to supply gas from its Geng North discovery to Pertamina’s Bontang LNG facility in East Kalimantan.
Verbatim Quotes
“The discovery confirms the effectiveness of Eni’s near-field exploration strategy in the Kutei Basin, aimed at creating value through its deep knowledge of geological plays and the application of advanced geophysical technologies, while exploiting the synergies with existing projects and facilities,” — Eni Spokesperson
