Indonesia has begun construction of the $15 billion Makassar Strait North Hub, a national strategic project designed to unlock ultra-deepwater gas reserves and boost energy sector growth.

Upstream regulator SKK Migas said the project represents one of the country’s largest energy investments, creating opportunities for technology development and domestic fabrication.

“It opens up opportunities for the application of new technology and investment in domestic oil and gas fabrication development,” said Djoko Siswanto, head of SKK Migas.

Operated by Searah, a joint venture between Eni and Petronas, the project combines the Geng North and Gehem gas fields in the Kutai Basin off East Kalimantan.

The development includes the Bahtera Haluan Lestari FPSO, Indonesia’s first ultra-deepwater production facility, capable of processing 1 billion standard cubic feet of gas per day and 80,000 barrels of condensate daily.

"We hope this project will not only assist but also become a driving force in achieving our production targets for 2029-2030, reaching 900,000 to 1 million barrels of oil per day and 12 billion cubic feet of gas per day," Djoko noted.

The FPSO will operate at depths of up to 2,000 metres, with first gas targeted for the fourth quarter of 2028. Construction is expected to create 8,000 local jobs. -OGN/TradeArabia News Service