Indonesia announces major offshore gas discovery in East Kalimantan to boost long term energy supply

Indonesia has announced a significant gas discovery in the Ganal Block, offshore East Kalimantan, with authorities highlighting its potential to strengthen the country’s future energy supply.

According to a press release issued by the Ministry of Energy and Mineral Resources on 20 April 2026, exploration at the Geliga-1 well has identified estimated resources of approximately 5 trillion cubic feet (Tcf) of natural gas and around 300 million barrels of condensate.

The block is operated by Italian energy company ENI, which holds an 82 per cent stake, while the remaining 18 per cent is owned by Sinopec.

The discovery is located within the Kutai Basin, an area long recognised for its hydrocarbon potential. Officials said the find reinforces Indonesia’s upstream oil and gas prospects at a time of rising domestic energy demand.

Energy and Mineral Resources Minister Bahlil Lahadalia described the discovery as a major development and acknowledged ENI’s role in the exploration success.

“In a global environment where many countries are safeguarding their reserves, we are once again grateful that this discovery is a blessing,” Bahlil said during a press briefing in Jakarta on Monday.

He added that the government would continue to prioritise exploration efforts in line with national directives to identify new oil and gas resources.

The Geliga-1 well was drilled to a depth of approximately 5,100 metres in waters around 2,000 metres deep. It builds on a series of recent exploration successes in the Kutai Basin, including the Geng North discovery in 2023 and the Konta-1 well in 2025.

Authorities said the latest find supports broader plans to expand gas production capacity. ENI’s current output of around 600–700 million standard cubic feet per day (MMSCFD) is projected to increase to approximately 2,000 MMSCFD by 2028, with further growth to around 3,000 MMSCFD by 2030.

Condensate production is also expected to rise. Initial output is projected to reach about 90,000 barrels per day by 2028, increasing to approximately 150,000 barrels per day by 2029–2030.

Officials indicated that higher gas and condensate production could contribute to meeting domestic energy demand and reducing reliance on imported oil.

The Geliga discovery follows final investment decisions for several major offshore gas projects, including Gendalo and Gandang under the South Hub development, as well as Geng North and Gehem under the North Hub project.

These projects form part of a broader deepwater development strategy in East Kalimantan.

The North Hub development is expected to utilise a new Floating Production Storage and Offloading (FPSO) facility with a processing capacity of 1 billion cubic feet of gas per day and 90,000 barrels of condensate per day.

The project will also integrate existing infrastructure, including the Bontang liquefied natural gas (LNG) plant.

In addition to Geliga, the government highlighted the nearby Gula discovery, which is estimated to contain around 2 Tcf of gas and 75 million barrels of condensate.

Combined initial assessments suggest that the two fields could deliver additional production of up to 1 billion cubic feet of gas per day and tens of thousands of barrels of condensate daily.

Separately, ENI confirmed in March 2026 a final investment decision worth approximately US$15 billion for the development of the Gendalo–Gandang and Geng North–Gehem projects.

The developments are expected to utilise deepwater production systems and existing facilities, including the Jangkrik Floating Production Unit and infrastructure at the Bontang LNG plant.

The projects involve drilling multiple production wells at depths ranging from 1,000 to 2,000 metres. Gas produced from the fields is expected to be transported onshore via pipeline networks for domestic distribution and LNG processing, while condensate will be stored offshore and shipped by tanker.

Production from the new developments is scheduled to begin in 2028, with peak output anticipated the following year.

The Ministry stated that ongoing evaluation of development schemes aims to accelerate commercialisation of the discovery and maximise its contribution to national energy supply.