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Eni ships first LNG from Jangkrik

By  Thursday, 22 June 2017 21:22
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Italian oil and gas company Eni carried out its first shipment of liquefied natural gas (LNG) produced for the Indonesian domestic market by the Jangkrik field, located in the Muara Bakau block, Kutei basin, in the deep water of Makassar Strait.

The 22,500 m3 cargo left the Bontang liquefaction plant in East Kalimantan and is headed to Bali, where it will be unloaded as part of a long-term LNG contract signed with Pertamina in June 2015.

Eni started gas production at Jangkrik ahead of schedule on 15 May 2017. Gas produced is processed onboard the (FPU) Jangkrik and then flows to the onshore receiving facility. It then reaches the Bontang gas liquefaction plant through the East Kalimantan transportation system.

The LNG produced is sold under long-term contracts, partly to Pertamina and partly to Eni itself, which will sell it as part of the development of its international LNG portfolio.

Eni operates the Muara Bakau PSC in which it holds a 55% stake through its subsidiary Eni Muara Bakau BV. The other PSC partners are ENGIE E&P with a 33.334% stake and PT. Saka Energi Muara Bakau with an 11.666% stake.

All activities are carried out in coordination with SKK Migas, the entity representing the government of Indonesia. Eni has been operating in Indonesia since 2001 and currently has a large asset portfolio across exploration, production, and development.

Production activities are located in the Mahakam River delta, East Kalimantan, through VICO, a joint venture between Eni (50% stake), which is the operator, and Saka Energi (50% stake). VICO, which is party to the Sanga Sanga PSC, produces on average 20,000 boe/d.

Separately, Eni signed a series of agreements with state-owned JSC KazMunayGas (KMG) to expand its scope of activities in Kazakhstan’s upstream sector. The deal renews the conditions for the transfer to Eni of 50% of the subsoil use rights in the Isatay block, located in the Caspian Sea, for exploration and production.

The block, which is estimated to have significant potential for hydrocarbon resources will be operated by a joint operating company (JOC) formed by Eni and KMG.

In addition, Eni and KazMunayGas EP, a subsidiary of KMG, have signed an agreement to further expand upstream technology co-operation and evaluate potential joint developments in new projects. The agreement also includes a technical and managerial training program for KMG EP staff.

Image: Eni

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