Government Commences Construction of North Hub Gas Project

The government has commenced the construction phase of the North Hub gas project with the development of the Bahtera Haluan Lestari Floating Production Storage and Offloading (FPSO) vessel, targeting production to begin in 2028. The offshore oil and gas project carries a total investment value of 11.8 billion US dollars, with approximately 2.9 billion US dollars specifically allocated for the construction of the FPSO facility. The construction phase was marked by a first steel cutting ceremony for the topside of the Bahtera Haluan Lestari FPSO in Tanjung Balai Karimun, Riau Islands. This initial steel cutting signals the start of the fabrication process for the main structure of the FPSO, which will serve as the central gas processing hub for 16 wells in the Geng North and Gehem fields. Djoko Siswanto, Head of the Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas), stated that the substantial investment value is clear evidence that Indonesia’s business climate remains highly attractive to investors and continues to be trusted internationally. He added that the success of the domestic fabrication industry in meeting the challenges of this large-scale project proves that high technology can now be implemented within the country. The North Hub Development Project has passed several key milestones since the gas discovery at the Geng North-1 exploration well. The Plan of Development (POD) I for the Kutei North Hub was approved in August 2024. The project subsequently completed the Front-End Engineering Design (FEED) phase in January 2025 and reached the Final Investment Decision (FID) in March 2026. The first steel cutting ceremony took place in July 2026, four months after the final investment decision.