Jakarta. Rome-based energy giant Eni has expressed interest in investing $10 billion in two offshore natural gas blocks in East Kalimantan, Indonesian Energy and Mineral Resources Minister Bahlil Lahadalia said on Sunday.

Eni, one of Europe’s largest oil and gas companies with operations in over 70 countries, plans to begin new gas production in the region by 2027. The company has been operating in the area for around a decade to process natural gas in its floating production unit.

“The proposed investment in East Kalimantan will focus on offshore natural gas development, specifically in the Jangkrik and Merakes blocks,” Bahlil said, as quoted by Antara news agency. Both blocks are located in the Makassar Strait.

According to the minister, Eni’s investment interest comes at a time of global economic uncertainty caused by geopolitical tensions and disrupted supply chains.

“This is good news for Indonesia, especially for the economic growth of East Kalimantan,” Bahlil noted.

He added that Eni’s investment is expected to generate significant employment opportunities, both locally and nationally.

Under the proposed plan, the provincial government of East Kalimantan will hold a participating interest in the gas projects, which would increase the region’s share of revenue from the development, Bahlil said.

According to Eni Indonesia's website, the company started gas production at the Jangkrik field on 15 May 2017. Gas produced is processed onboard the floating production unit and then flows to the onshore receiving facility. It then finally reaches the Bontang gas liquefaction plant, and the LNG produced is sold under long-term contracts, partly to Pertamina and partly to Eni itself.

The company said it chose the name Jangkrik (cricket) for the field with the aim of "making the project fast like the insect that, despite being small, is able to take large leaps that allow it to move quickly."