Merakes

Location and Geology

The Merakes natural gas field is situated in the Kutei Basin, offshore East Kalimantan, Indonesia. It is located in deepwater, with the Merakes field itself at a water depth of approximately 1,500 meters (4,921 feet), and the nearby Merakes East field at a depth of around 5,222 feet.

Operators and Ownership

The Merakes project is operated by Eni East Sepinggan Limited, with ownership shared between Eni SpA and PT Pertamina (Persero).

Production and Infrastructure

The Merakes field produces natural gas from subsea wells, which are tied back to the existing Jangkrik Floating Production Unit (FPU). This FPU processes gas from both the Merakes and Jangkrik projects, optimizing the use of existing infrastructure and achieving a combined production capacity of 21 million standard cubic meters of gas per day.

The gas is transported through the existing infrastructure to the Onshore Receiving Facility (ORF) in Senipah, where it is distributed to the internal market. Additionally, a portion of the production is processed at the Bontang LNG liquefaction plant, one of the most reliable in the world, for both domestic use and export.

Development and Timeline

• The project started producing natural gas in 2018.
• The development plan for Merakes was approved, and the project has been in operation since then.
• For the Merakes East field, the final investment decision (FID) was approved in 2023, with commercial production expected to start in 2025 and peak in 2026.

Contractors and Partners

• TechnipFMC was awarded a large integrated Engineering, Procurement, Construction, Transportation, and Installation (iEPCI™) contract for the Merakes project. This contract included the engineering, procurement, installation, and pre-commissioning of subsea equipment such as subsea trees, manifolds, and flexible lines.
• Other contractors involved include Deep Sea Mooring for the Merakes East project.

Production Outlook

• The Merakes field has recovered 38.48% of its total recoverable reserves, with peak production expected in 2024 and production continuing until the field reaches its economic limit in 2033.
• The Merakes East field is expected to start commercial production in 2025, with production forecast to continue until the field reaches its economic limit in 2039.

Economic and Environmental Impact

• The Merakes project contributes significantly to Indonesia's gas output, both for the domestic energy market and for export. This aligns with Eni's strategy to increase the share of natural gas production to 60% by 2030 as part of its energy transition goals.
• Eni also engages in local development projects in Indonesia, including providing drinking water, promoting agriculture, and combating waste, which are essential aspects of their operating philosophy.

Technological and Operational Efficiency

• The project utilizes an integrated approach to simplify subsea field architecture, enabling long tie-backs and accelerating time to market. This is exemplified by the use of the existing Jangkrik FPU and transport infrastructure, reducing costs and lead time.

In summary, the Merakes natural gas project is a significant contributor to Indonesia's energy sector, leveraging existing infrastructure to optimize production and reduce costs, while also supporting local development and aligning with broader energy transition goals.