(Reuters) -Eni has started gas production from the Merakes East field in the Kutei Basin offshore Indonesia, the Italian energy group said on Tuesday in a statement.
The field is part of the East Sepinggan block, where Eni holds an 85% operating stake, and its production is expected to contribute up to approximately 18,000 barrels of oil equivalent per day to Eni’s output.
The gas is processed at the Jangkrik Floating Production Unit and transported to Indonesia’s internal market and the Bontang liquefaction plant for domestic and export use.
This operation is part of Eni’s strategy to utilize significant gas resources in Indonesia, supported by collaboration with SKK Migas, Indonesia’s Upstream Regulator and Supervisor.
Eni has recently announced talks with Malaysia’s state energy firm Petroliam Nasional Bhd (Petronas) to create a joint venture to oversee selected upstream assets in Indonesia and Malaysia.
Eni has been operating in Indonesia since 2001, with a current production of around 700 million standard cubic feet per day in East Kalimantan.
(Reporting by Laura Contemori. Editing by Mark Potter)