Indonesia starts construction of US$15 billion Makassar Strait North Hub gas project

Indonesia has started construction of the Makassar Strait North Hub, a US$15 billion national strategic project designed to unlock ultra-deepwater natural gas reserves. The upstream regulator SKK Migas said the development is among the largest foreign and domestic investments in the country's energy sector.

Sponsored

The project is operated by Searah, a joint venture between Italy's Eni SpA and Malaysia's Petronas. SKK Migas head Djoko Siswanto said the scheme opens opportunities for new technology and for investment in domestic oil and gas fabrication development.

He made the remarks during the first steel-cutting ceremony for the project's Floating Production, Storage, and Offloading facility in Karimun Regency, Riau Islands, on Thursday, July 23. The development combines the offshore Geng North and Gehem gas fields in the Kutai Basin off East Kalimantan.

The total investment includes US$3 billion for FPSO construction and US$12 billion in additional capital expenditure. The FPSO unit, Bahtera Haluan Lestari, is designed to process up to 1 billion standard cubic feet of gas per day and 80,000 barrels of condensate per day, with storage capacity of 1.4 million barrels.

Sponsored

First gas output is targeted for the fourth quarter of 2028, and the 300-meter vessel is described as Indonesia's first ultra-deepwater production facility.

#SKKMigas #Searah #EniSpA #Petronas #MakassarStraitNorthHub

Image Credit: 360LiveNews