North Hub Gas Project Enters Construction Phase, First Production Targeted for 2028
The Floating Production Storage and Offloading (FPSO) vessel Bahtera Haluan Lestari at 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 gas processing hub for 16 wells in the Geng North and Gehem fields.
The project is targeted to begin production in 2028, before delivering gas to the Santan Terminal through a 32-inch-diameter export pipeline.
Djoko Siswanto, Head of SKK Migas, said the offshore oil and gas project involves a total investment of USD 11.8 billion, of which around USD 2.9 billion has been allocated specifically for the construction of the FPSO facility.
“This substantial investment value is tangible proof 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 demonstrates that high technology can now be implemented domestically,” Djoko said in a written statement on Sunday (26 July 2026).
The North Hub Development Project has passed through several important milestones since gas was discovered at the Geng North-1 exploration well. Approval of the Plan of Development, or POD I, for the Kutei North Hub was obtained in August 2024.
The project completed its Front-End Engineering Design (FEED) in January 2025 and reached its Final Investment Decision (FID) in March 2026. Four months after the FID, the project entered the first steel-cutting phase in July 2026.
Mirko Araldi, Director of Eni North Ganal Ltd, said the inauguration marked the start of a stage far larger than merely building the topside module. According to him, the achievement reflects the hard work, dedication and shared vision of the many parties involved in delivering reliable energy supplies for Indonesia.
“We at Searah are proud to be part of Indonesia’s energy journey. Today’s achievement is a manifestation of our continuing confidence in Indonesia’s energy sector, as well as our long-term commitment to keep investing, growing and creating value in this country,” Mirko said.
He said the company would strive to meet the first gas target agreed for the end of 2028. North Hub is targeted to begin operating in less than three years after the final investment decision.
“We are targeting first production in 2028. This strategic project is targeted to begin operating in less than three years after the Final Investment Decision (FID), reflecting the strong commitment, collaboration and execution excellence of all parties involved,” he said.
In its development, North Hub will connect 16 wells through a subsea production system to the Bahtera Haluan Lestari FPSO. Once processed, the gas will be delivered to the Santan Terminal through a 32-inch-diameter export pipeline network.
The start of FPSO fabrication represents one of the key milestones towards the 2028 production target. The project’s success will depend on adherence to the construction schedule, quality of work, workplace safety and coordination among all parties involved.