Eni Advances Indonesia Offshore Exploration With Sapukala Block
Eni S.p.A. E, the Italian integrated energy company, has announced that it has secured a 100% participating interest in an offshore block — the Sapukala block in Indonesia. The exploration block is located in a deepwater area in the Kutei Basin, East Kalimantan. The water depth at the site is approximately 1,000-2,500 meters. The contract award follows a joint study conducted by Eni with a well-known academic institution in Indonesia and participation in the country's direct-offer tender process.
Eni highlighted that the new acreage lies in proximity to other blocks where it operates or has participating interests. Notably, the exploratory block is close to the planned North Hub developments, operated by Searah, a 50:50 joint venture between Eni and the Malaysian energy firm PETRONAS. The North Hub developments include some major gas and condensate discoveries such as Geng North, Gula and Geliga.
Eni said the joint study indicates that the Sapukala block is highly prospective. The company has also completed a seismic study to gather more information on the block, providing a basis for further evaluation. The seismic program can help Eni understand the block’s geological structure and hydrocarbon potential. Per the initial three-year program disclosed by Indonesia, the company was responsible for carrying out geological and geophysical studies on the exploration block. The work program also included acquisition and processing of 3D seismic data for 1,500 square kilometers in the Sapukala block. These studies are expected to help Eni make future exploration drilling and investment decisions.
The Italian energy firm has been operating in Indonesia since 2001. At present, Eni operates the Peri-Mahakam and Makassar Strait blocks in the country directly. This year, the company formed a joint venture with PETRONAS named Searah, bringing together their complementary assets, capabilities and regional expertise.
E’s Zacks Rank & Other Key Picks
Eni currently sports a Zacks Rank #1 (Strong Buy).
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Galp Energia is a Portuguese energy company engaged in exploration and production activities. The company’s oil exploration efforts have yielded positive results, particularly with the Mopane discovery in the Orange Basin, offshore Namibia. This discovery allows Galp to diversify its global presence with the potential to become a significant oil producer in the region. It refines and markets oil products and gas, as well as engages in marketing and sales activities.
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This article originally published on Zacks Investment Research (zacks.com).
