MILAN: Italian oil firm Eni on Tuesday signed agreements to sell 1.4 million tonnes per annum (mtpa) of liquefied natural gas from an Indonesian deepwater project to state-run company Pertamina. Production will start in 2017 and come from the Jangkrik Field Development Project offshore Indonesia, a block in which Eni holds a 55 percent operating stake.
Gas from the project will be piped to the country's Bontang LNG plant, where it will be liquefied.
"It is one of the first deepwater gas projects in Indonesia being developed under a fast-track scheme, and confirms Eni's commitment in supplying gas for the development of the Indonesian domestic market," Eni Chief Executive Claudio Descalzi said in a statement.
The other joint-venture partners are GDF Suez Exploration Indonesia, a unit of Engie, with 33.334 percent and Saka Energi Muara Bakau with 11.666 percent.
Indonesia was once self-sufficient in oil and gas but has struggled for years to attract investment to halt declining output - difficulties that have been exacerbated by the current environment of weak oil prices.
Lower LNG production and rising domestic demand have already forced Indonesia to export less LNG and instead redirect shipments to new domestic import terminals.
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