Indonesia has officially begun construction of the Makassar Strait North Hub, a USD15bn national strategic project intended to unlock ultra-deepwater natural gas reserves and support economic growth (Antara News, 23/07/2026).
The development is operated by Searah, a joint venture between Italy’s Eni and Malaysia’s Petronas, and combines the offshore Geng North and Gehem gas fields located in the Kutai Basin, off East Kalimantan.
The project represents a total investment of USD15bn, including USD3bn allocated to the construction of the FPSO and a further USD12bn in capital expenditure.
The FPSO, named Bahtera Haluan Lestari, will have the capacity to process up to 1 billion standard cubic feet of gas per day (or about 28 mcm/d) and 80 kb/d of condensate, while providing storage for 1.4 mbl.
Designed to operate in water depths of up to 2,000 meters, the 300-meter-long vessel will become Indonesia’s first ultra-deepwater production facility. First gas is scheduled for the fourth quarter of 2028.
The announcement comes shortly after the launch of the Abadi Masela LNG project, one of Indonesia’s largest energy developments. The project is expected to produce 9.5 Mt/year of LNG, deliver 150 mcf/d (1.5 bcm/year) of pipeline gas to the domestic market, and produce approximately 35,000 bbl/d of condensate (KEI, 20/07/2026).