Eni, headquartered in Rome and established in 1953, operates in the fields of oil, natural gas, and petrochemicals. It is one of Europe’s largest oil companies, with operations in over 70 countries.
The company, which specializes in the exploration, production, and development of hydrocarbons both onshore and offshore, will invest US$10 billion in East Kalimantan and plans to begin production in 2027, Lahadalia said here on Saturday (July 19).
“Eni’s planned investment in East Kalimantan is for the development of offshore natural gas fields in the Makassar Strait area, specifically in the Jangkrik and Merakes blocks,” he said.
He pointed out that production from the two adjacent offshore gas fields is expected to boost the gas supply to meet both domestic and export market demands.
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Lahadalia acknowledged that the current global economic situation is challenging as tensions and wars, which disrupt economic activities, still occur in several parts of the world.
He explained that amid the global challenges, it is considered good news that a European company is willing to invest in Indonesia, especially in East Kalimantan.
The investment would accelerate the economic cycle in the region, he added.
Amid the geopolitical tensions, he praised President Prabowo Subianto’s diplomacy, which he said succeeded in reducing US import tariffs on Indonesian goods from 32 percent to 19 percent.
Regarding Eni’s investment, he assured that it would significantly contribute to regional economic growth and absorb workers at both local and national levels.
Moreover, he said the government will encourage Eni to allocate a portion of its participating interest (PI) to the East Kalimantan provincial government, which would increase the province’s share of revenue.
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Translator: Ghofar, Kenzu
Editor: Rahmad Nasution
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