New Chapter for North Hub Gas Project Worth Rp211.7 Trillion, Targeting 1,000 Mmscfd Production
The Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) continues to accelerate the development of the strategic North Hub Development Project off the coast of East Kalimantan.
Most recently, the project has carried out its first steel-cutting ceremony, marking the start of construction of the FPSO Bahtera Haluan Lestari, a key facility in the North Hub Development Project.
The project, valued at US$11.8 billion or approximately Rp211.7 trillion (at an exchange rate of Rp17,942 per US dollar), is targeted to produce 1,000 million standard cubic feet of gas per day (MMSCFD) and 80,000 barrels of condensate per day (BCPD) starting in the fourth quarter of 2028.
The latest milestone was marked by the commencement of construction of the Floating Production Storage and Offloading (FPSO) Bahtera Haluan Lestari through a first steel-cutting ceremony in Tanjung Balai Karimun, Riau Islands.
Head of SKK Migas Djoko Siswanto said North Hub production is expected to become one of the pillars supporting the achievement of the national oil and gas production target by 2030. The government is targeting national production of 1 million barrels of oil per day and 12 billion cubic feet of gas per day.
“We hope this project will not only help, but become the main driving engine in achieving the national production target in 2030 set by the Government, namely 1 million barrels of oil per day and 12 billion cubic feet of gas per day,” said Djoko in Tanjung Balai Karimun, Riau Islands, quoted on Friday (24/7/2026).
The North Hub Development Project integrates the development of the Geng North Field and the Gehem Field in the Kutai Basin, offshore East Kalimantan. The ultra-deep upstream oil and gas project has a total investment value of US$11.8 billion.
Of the total investment, around US$2.9 billion has been allocated for the construction of the Floating Production Storage and Offloading facility, the FPSO Bahtera Haluan Lestari. Construction of the facility has entered the construction phase, marked by the first steel-cutting of the topside section in Tanjung Balai Karimun.
According to Djoko, the investment value demonstrates that Indonesia’s upstream oil and gas sector remains attractive to investors. The involvement of the domestic fabrication industry also reflects the nation’s capability to execute large-scale, high-technology projects.
“The North Hub Development Project in the Makassar Strait is a National Strategic Project (PSN) in upstream oil and gas whose development not only plays a role in strengthening national energy security, but also drives economic growth, creates jobs, and enhances the capacity of the domestic offshore fabrication industry. The development of this project will also open more than 8,000 new jobs for the Indonesian people,” he explained.
Director of Eni North Ganal Ltd Mirko Araldi said the company is committed to meeting the first production target in 2028. According to him, the project’s progress to the construction stage is the result of cooperation among various parties to deliver reliable energy supplies for Indonesia.
The government, through the Ministry of Energy and Mineral Resources, will continue to encourage the development of strategic oil and gas fields, particularly gas resources that serve as transition energy. The on-schedule construction of North Hub will determine the project’s contribution to energy security and the achievement of national oil and gas production targets.