North Hub Gas Project Enters Construction Phase, First Production Targeted for 2028

The Floating Production Storage and Offloading (FPSO) Bahtera Haluan Lestari in Tanjung Balai Karimun has officially entered the construction phase. The FPSO, part of the North Hub Development Project, is a floating production facility that will serve as the central gas processing hub for 16 wells in the Geng North and Gehem fields. The project is targeted to begin production in 2028 before channelling gas to the Santan Terminal via a 32-inch export pipeline. Head of SKK Migas Djoko Siswanto stated that the offshore oil and gas project has a total investment of USD 11.8 billion. Of this amount, approximately USD 2.9 billion is allocated specifically for the construction of the FPSO facility. “This substantial investment value is clear evidence that Indonesia’s business climate remains highly attractive to investors and continues to be trusted by the international community. The success of the domestic fabrication industry in meeting the challenges of this large-scale project proves that high technology can now be implemented domestically,” Djoko said in a written statement on Sunday. The North Hub Development Project has passed several important stages since the gas discovery at the Geng North-1 exploration well. Approval for the Plan of Development, or POD I Kutei North Hub, was obtained in August 2024. The project then completed the Front-End Engineering Design (FEED) in January 2025 and reached the Final Investment Decision (FID) in March 2026. Four months after the FID, the project entered the first steel cutting stage in July 2026. Eni North Ganal Ltd Director Mirko Araldi said the inauguration marked the beginning of a stage far greater than just the construction of the topside modules. According to him, this achievement reflects the hard work, dedication, and shared vision of various parties to deliver reliable energy supply for Indonesia. “We at Searah are proud to be part of Indonesia’s energy journey. Today’s achievement is a manifestation of our continued confidence in the Indonesian energy sector, as well as our long-term commitment to continue investing, growing, and creating value in this country,” Mirko said. He stated that his party will strive to meet the agreed first gas target by the end of 2028. The North Hub is targeted to commence operations in less than three years after the final investment decision. “We are targeting first production in 2028. This strategic project is targeted to start operating in less than three years after the Final Investment Decision, reflecting the strong commitment, collaboration, and execution excellence of all parties involved,” he said. In its development, the North Hub connects 16 wells through a subsea production system to the FPSO Bahtera Haluan Lestari. The processed gas will then be channelled to the Santan Terminal via a 32-inch diameter export pipeline network. The commencement of FPSO fabrication is one of the important stages towards the 2028 production target. The success of the project will be determined by the accuracy of the construction schedule, work quality, safety, and coordination of all parties involved.