INFORM

OCTOBER 2023

Indonesia back on the

exploration map with Eni’s Geng
North-1 discovery
Indonesia back on the exploration map with Eni’s Geng North-1 discovery

The facts: Eni has confirmed its eagerly anticipated Geng North-1 exploration well has discovered potential in-place volumes
of 5 tcf of gas and 400 million barrels condensate.

The well, drilled to a depth of 5,025 metres in 1,947 metres of water on the North Ganal PSC, offshore East Kalimantan,
encountered a 50-metre Miocene sandstone reservoir. Initial production testing suggests a well capacity of 80-100 mmcfd of gas
and 5-6 kb/d of condensate.

A potentially recoverable volume of over 700 mmboe, assuming a gas recovery factor of 65% and 35% for condensate, would
make Geng North-1 the largest global exploration find this year.

Source: Wood Mackenzie Lens.

World-class discovery for a world-class explorer. Geng North is further proof of Eni’s ability to add material volumes via the
drill-bit. But this latest success builds on several years of canny business development in Indonesia, via fast-track projects,
near-field exploration and opportunistic acquisitions.

With the consolidation of Neptune Energy and Chevron’s Indonesian portfolios earlier this year, Eni is now perfectly placed to
farm-down its Geng North stake - the usual next stage of its well worn ‘dual exploration strategy’.

Advantaged resource close to infrastructure. Geng North is not immediately proximal to Eni’s existing Jangkrik
infrastructure, but it will likely support a new phase of development that could extend the life of the under-utilised Bontang LNG
plant.

Any new development could also incorporate other discoveries; Eni has estimated a further five tcf of discovered but
undeveloped resource across its Kutei acreage. A new production hub, and further exploration upside, will accelerate Eni’s
efforts to shift its portfolio towards gas and LNG.

Indonesia exploration back on the map? This discovery may still be too little too late in Indonesia's ambition to reach 12 bcfd
of gas production by 2030, even for its new Italian superhero, Eni. But could this discovery finally be a turning point for
Indonesia's exploration sector?

Page 2 of 4
Indonesia back on the exploration map with Eni’s Geng North-1 discovery

Mubadala, Harbour Energy and BP will hope so. After finishing up at Geng North, the West Capella drillship will move to spud
the first of four highly anticipated wells on the South Andaman and Andaman II blocks, offshore North Sumatra/Aceh.

First up is Mubadala’s Layaran-1 well, one of our global wells to watch, with a pre-drill estimate in the region of 400 mmboe.
Harbour Energy’s Timpan-1 discovery in 2022 helped de-risk the basin; another Geng North-sized find would truly put Indonesia
back on the exploration map.

Look out for more analysis of the Geng North-1 discovery and its implications for Indonesia's gas outlook in the coming weeks.

Geng North-1 discovery map

Source: Wood Mackenzie Lens, yellow denotes Eni-operated acreage

Page 3 of 4
These materials, including any updates to them, are published by and remain subject to the copyright of the Wood
Mackenzie group ("Wood Mackenzie"), and are made available to clients of Wood Mackenzie under terms agreed between
Wood Mackenzie and those clients. The use of these materials is governed by the terms and conditions of the agreement
under which they were provided. The content and conclusions contained are confidential and may not be disclosed to any
other person without Wood Mackenzie's prior written permission. Wood Mackenzie makes no warranty or representation
about the accuracy or completeness of the information and data contained in these materials, which are provided 'as is'.
The opinions expressed in these materials are those of Wood Mackenzie, and nothing contained in them constitutes an
offer to buy or to sell securities, or investment advice. Wood Mackenzie's products do not provide a comprehensive analysis
of the financial position or prospects of any company or entity and nothing in any such product should be taken as
comment regarding the value of the securities of any entity. Wood Mackenzie does not warrant or represent that these
materials are appropriate or sufficient for your purposes. If, notwithstanding the foregoing, you or any other person relies
upon these materials in any way, Wood Mackenzie does not accept, and hereby disclaims to the extent permitted by law, all
liability for any loss and damage suffered arising in connection with such reliance. Please also note that the laws of certain
jurisdictions may prohibit or regulate the dissemination of certain types of information contained in these materials, such
as maps, and accordingly it is your responsibility to ensure that any dissemination of such information across national
boundaries within your organisation is permitted under the laws of the relevant jurisdiction.

Copyright © 2023, Wood Mackenzie Limited. All rights reserved.