North Hub Becomes New Magnet for Upstream Oil and Gas Investment

Indonesia's upstream oil and gas sector is seeing a surge of interest thanks to the North Hub Development Project in the Selat Makassar. SKK Migas (Special Task Force for Upstream Oil and Gas Business Activities) head Djoko Siswanto highlighted the project as a significant draw for new investment.

This strategic initiative, valued at approximately $15 billion, is expected not only to bolster national energy security but also to unlock fresh investment avenues within the domestic oil and gas fabrication industry. The North Hub project involves the integrated development of the Geng North and Gehem fields in the Kutai Basin, offshore East Kalimantan.

Operated by Searce, the project encompasses the construction of 16 development wells, subsea production systems, a Floating Production, Storage and Offloading (FPSO) facility, a 32-inch gas export pipeline, and a gas reception facility at the Santan Terminal. Its processing capacity includes 1 billion cubic feet per day (BSCFD) of gas and 80,000 barrels per day of condensate, with a storage capacity of 1.4 million barrels.

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The success of the domestic fabrication industry in meeting the challenges of this large-scale project is tangible proof that high technology can be implemented in Indonesia while opening up new investment opportunities for the development of domestic oil and gas fabrication facilities.

Djoko emphasized that the North Hub's development will stimulate economic growth, generate employment, and enhance the capabilities of Indonesia's offshore fabrication industry. He noted that the domestic industry's success in meeting the project's large-scale demands demonstrates its capacity for high-level technological implementation and opens doors for new domestic fabrication facilities.

Searce North Ganal CEO Mirko Araldi stated that the North Hub is designed to tap into the deepwater gas potential of the Kutai Basin and support Indonesia's long-term energy needs. Production is anticipated to commence in 2028, less than three years after the final investment decision. Searce, a 50-50 joint venture between ENI and PETRONAS established in 2026 and headquartered in London, manages 19 upstream oil and gas assets in Indonesia and Malaysia, aiming to become a major upstream energy player in Southeast Asia.

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The North Hub is designed to unlock the deepwater gas potential in the Kutai Basin and support Indonesia's energy needs in the long term.