SKK Migas: North Hub Project in Makassar Strait to Strengthen Energy Security
Karimun, Riau Islands (ANTARA) - The North Hub Development Project in the Makassar Strait, a National Strategic Project in the upstream oil and gas sector, will strengthen national energy security while driving economic growth, according to the Special Task Force for Upstream Oil and Gas Activities (SKK Migas).
Speaking at the first steel cutting ceremony for the construction of the North Hub Floating Production, Storage and Offloading (FPSO) facility in Karimun Regency, Riau Islands, on Tuesday, SKK Migas Head Djoko Siswanto said the project is one of the largest oil and gas investments currently being developed in Indonesia, and opens up opportunities for the application of new technology and investment in domestic oil and gas fabrication.
He said the success of the domestic fabrication industry in meeting the challenges of such a large-scale project is concrete proof that advanced technology can be implemented in Indonesia. It also opens up new investment opportunities for oil and gas fabrication development within the country.
The North Hub Development Project in the Makassar Strait is a strategic offshore gas development project run by Searah, a joint venture between Eni SpA and Petronas. The project continues development previously carried out by the Italian multinational energy company Eni SpA.
The project, he continued, integrates the development of the Geng North and Gehem fields in the Kutai Basin offshore East Kalimantan, with a total investment value of around US$15 billion, comprising US$3 billion for FPSO construction and the remaining US$12 billion for other capital expenditure.
The FPSO Bahtera Haluan Lestari being built for the project is designed to process up to 1 billion standard cubic feet of gas per day (1 BSCFD) and 80,000 barrels of condensate per day, with storage capacity of up to 1.4 million barrels.
“We hope this project will not only help but become the engine driving our production targets in 2029-2030, to reach 900,000 to 1 million barrels of oil per day and 12 billion cubic feet of gas per day,” he said.
Fabrication of the FPSO topside modules is being carried out in four areas of the Riau Islands — Batam, Tanjung Balai Karimun and Bintan — with a total fabrication weight estimated at 4,000 tonnes of steel, which also opens up 8,000 national job opportunities during construction.
Djoko said the North Hub Development is located at a depth of 2,000 kilometres, with a length of 300 metres and a width of 45 metres, making it the first production facility project in Indonesia’s ultra-deep waters.
According to him, the development is an important part of efforts to bring new gas supply sources to Indonesia by harnessing deep-sea gas potential. The project is targeted to begin flowing first gas in the fourth quarter of 2028.
A key phase in the development of the Kutai North Hub field is the start of fabrication of the floating production, storage and offloading vessel modules, or Topside Module FPSO, centred at Saipem’s fabrication facility in Tanjung Balai Karimun, Riau Islands.
He expressed hope that collaboration across disciplines and sectors — from ministries, relevant agencies and regional governments to Searah and the partners involved — can execute the project well, so that every stage proceeds safely, on time and to a high standard.
By upholding these principles, the North Hub Development Project will stand as an example of the success of Indonesia’s upstream oil and gas development, delivering tangible benefits for national energy security and the nation’s economy.