The Government of Indonesia has commenced construction of the Makassar Strait North Hub, a major offshore gas development project located off the coast of East Kalimantan. The project, with an estimated investment of USD15 billion, aims to unlock large-scale natural gas reserves by integrating production from two ultra-deepwater gas fields in the Kutai Basin. The investment includes approximately USD3 billion for the construction of a floating production, storage and offloading (FPSO) facility and USD12 billion for associated field development activities.
The project’s centrepiece will be the Bahtera Haluan Lestari FPSO, Indonesia’s first ultra-deepwater production facility. Designed to operate in water depths of up to 2,000 metres, the 300-metre-long vessel will be capable of processing 1 billion standard cubic feet of natural gas per day and 80,000 barrels of condensate per day. It will also provide storage capacity of approximately 1.4 million barrels, enabling continuous offshore operations in deepwater conditions. Construction activities are progressing towards the production phase, with first gas targeted for the fourth quarter of 2028.
The Makassar Strait North Hub is expected to strengthen Indonesia’s domestic energy production capacity while supporting industrial development and regional economic growth. The project forms part of the country’s broader strategy to develop its offshore hydrocarbon resources and enhance long-term energy security through advanced deepwater production infrastructure.