He also told the SEAAOC conference in Darwin the field in Block JPDA 06-105 could hold between 30-40 million barrels of oil, though he added it was still early days for the project and more studies were needed to firm up the reserves.

The Italian major is currently preparing a development plan for the field for submission to the Timor Sea Designated Authority by the middle of next year.

Agostinelli said Eni is looking at producing Kitan using three subsea wells and a floating production, storage and offloading vessel, and is considering tying in two small oil discoveries, Kuda-Tasi and Jahal, in the area.

Eni has a 40% stake in the permit, in partnership with Inpex (35%) and Talisman Resources (25%).

Agostinelli also said its Blacktip gas-condensate field in the southern Bonaparte Basin remained on track to start production in early 2009.

The field, which has total gas reserves of about 1.5 trillion cubic feet, is expected to flow at an initial rate of about 23 petajoules a year into Australia's domestic market.

Eni has a 100% stake in Blacktip.