Blog Archive

Thursday, April 23, 2026

Eni’s Natural Gas and Condensate Discovery in Kutei Basin, Offshore Indonesia: Known to Be Sourced by Organic Matter Carried by Turbidite Sands, a Rare Occurrence


Sandstone Source Rocks with Coal Fragments and Abundant Leaf Matter in the Kutei Basin

     There are different kinds of sedimentary basin hydrocarbon systems. The type of kerogen generated through deep burial catagenesis depends on the source of the organic matter. Marine mudstones are the most common hydrocarbon source rocks, but there are also occurrences of terrestrial-sourced organic matter. Apparently, this is the case in the Kutei Basin, offshore Indonesia. This was determined back in 2006 and explained in an AAPG Bulletin paper led by author Arthur Saller. He noted that cores and drill cuttings show that the basin’s best source rocks are sandstones that also carried plant matter that got deposited with the turbiditic deep water sandstones. Saller noted that the sandstones have significantly higher TOC values than the shales. It was noted that the organic matter was composed of:

“…laminar coaly fragments, pieces of wood, resinite, and other coaly debris. Laminar coaly fragments are dominant, and their size, shape, and cuticle structure indicate that they were leaf fragments. Fossil leaf fragments occur in all deep-water sandstone packages from the upper slope to the basin floor. Fossil leaf fragments were apparently carried into deep water by turbidity currents during lowstands of sea level.”

     It is also noted that source rocks that contain leaf fragments often result in liquids that are waxy.




     A recent article in GeoExPro by Henk Kombrink explains why the mudstones and shales have much lower TOC values in what is considered to be a marine basin:

Well-oxygenated conditions, resulting in rapid decomposition of the algal material, and strong bottom currents are seen as two important factors as to why the shales do not have high marine organic matter contents.”

     Kombrink notes that the organic matter carried by the Miocene-aged sandstones in turbidity currents was deposited quickly in deeper water, resulting in preservation of the organic matter. Fluvial-Deltaic systems carried the organic matter to the sea, and turbidity currents quickly carried it underwater to the slope and basin floor.






Eni’s New Giant Natural Gas and Condensate Discovery – The Geliga-1 Well

     Eni’s new discovery, the Geliga‑1 exploration well, drilled in the Ganal block in the Kutei Basin, approximately 70 km from the East Kalimantan coast, is estimated to contain in-place resources of approximately 5 trillion cubic feet (Tcf) of gas and 300 million barrels of condensate. The well was drilled to a total depth of around 5,100 meters in a water depth of about 2,000 meters. Excellent reservoir conditions were encountered, and a Drill Stem Test (DST) is planned to confirm production potential.

     The Kutei Basin has a very successful exploration history, with recent wells in 2023 and 2025 encountering significant reserves.

     According to Eni:

The Geliga1 discovery also follows the recent Final Investment Decisions (FIDs) for the Gendalo and Gandang gas project (South Hub), and for the Geng North and Gehem fields (North Hub). The North Hub project will leverage a newly built FPSO with a handling capacity of 1 bscfd of gas and 90,000 bpd of condensate, as well as the existing Bontang LNG Plant.”

Initial assessments indicate that the combined Geliga and Gula resources have the capacity to produce an additional 1 bscfd of gas and 80,000 bpd of condensate, opening the possibility—among others—of establishing, in a fasttrack mode, a third production hub in the prolific Kutei Basin by mirroring the development concept of the ongoing North Hub project. Studies are also underway to evaluate a further rejuvenation of Bontang by resuming additional liquefaction capacity beyond what is already planned for the North Hub development, thus further extending the plant’s operational life.”

     Eni holds an 82% stake in the Geliga-1 well, with China’s Sinopec holding the other 18%.

The Ganal PSC is part of a portfolio of 19 blocks (14 in Indonesia and 5 in Malaysia) that will be contributed to Searah, a jointly controlled company between Eni and Petronas announced in November 2025. The new company will integrate assets, technical expertise and financial capabilities to support growth and strengthen its position in Southeast Asia. Searah’s business plans include the development of approximately 3 billion barrels of oil equivalent (boe) of discovered resources and the unlocking of significant exploration potential. Closing of the transaction is expected within Q2 2026. The valorization to a third party of a 10% stake in the Eni Indonesia portfolio withheld from the Searah transaction is underway and expected to be concluded in 2026. The Geliga discovery adds to the value of this sale.”

     Eni has been active in Indonesia since 2001 and has a net production of about 90,000 barrels of oil equivalent per day, mainly from the Jangkrik and Merakes fields offshore East Kalimantan.

     In his article, Kombrink considers the Kutei Basin find as an example of near-field exploration rather than frontier exploration. He compares near-field exploration wells in the Kutei Basin to the North Sea near-field wells and concludes:

“…the Kutei Basin still has a lot more running room than the North Sea.”

     In other words, these wells are bigger than most new North Sea discoveries these days. He also notes via a LinkedIn post by Dag Helland Hansen of EMGS that a strong increase in resistivity, similar to the successful Gehem field to the north, was observed in the Geliga-1 well.

 



 

References:

 

Geliga-1 – the gas discovery sourced by sandstones. Henk Kombrink. GEOExPro. April 20, 2026. Geliga-1 - the gas discovery sourced by sandstones - GeoExpro

Eni’s major Geliga Gas Discovery Confirms the Strategic Potential of Indonesia’s Kutei Basin and Unlocks Significant New Volumes for Domestic and International Markets. Eni. 20 April 2026. Eni’s major Geliga Gas Discovery Confirms the Strategic Potential of Indonesia’s Kutei Basin and Unlocks Significant New Volumes for Domestic and International Markets

Leaves in turbidite sands: The main source of oil and gas in the deep-water Kutei Basin, Indonesia. Arthur Saller; Rui Lin; John Dunham. AAPG Bulletin (2006) 90 (10): 1585–1608. Leaves in turbidite sands: The main source of oil and gas in the deep-water Kutei Basin, Indonesia | AAPG Bulletin | GeoScienceWorld

No comments:

Post a Comment

     A dangerous chemical leak occurred at the Catalyst Refiners plant in Institute, West Virginia, this week, resulting in two deaths and...