Searah, the joint venture established by Eni and Petronas, has commenced construction of the floating production, storage and offloading (FPSO) facility for its USD11.8 billion North Hub gas project in Indonesia. The project reached a key milestone with the first steel-cutting ceremony for the FPSO, which will process production from the Geng North and Gehem gas fields in the Kutai Basin, offshore East Kalimantan. According to Indonesia’s Ministry of Energy and Mineral Resources, the North Hub project is scheduled to begin production in 2028.
The FPSO will serve as the central processing facility for production from 16 offshore wells and is expected to handle output of up to 1 billion cubic feet of natural gas per day and 80,000 barrels of condensate per day by the fourth quarter of 2028. Of the total project investment, approximately USD2.9 billion has been allocated to the development of the FPSO. The project is being overseen by Indonesia’s upstream oil and gas regulator SKK Migas, which highlighted the facility as a critical component of the country’s future gas production capacity.
The North Hub development is one of Indonesia’s largest upstream natural gas projects and forms part of efforts to strengthen domestic energy production and support long-term gas supply. The Eni–Petronas joint venture stated that the project reflects its continued commitment to investing in Indonesia’s energy sector while contributing to the development of the country’s offshore gas infrastructure.