Eni and Petronas Start $11.8bn North Hub Gas Project in Indonesia
Searah, the joint venture between Italy’s Eni and Malaysia’s Petronas, has started developing a floating gas processing facility for its $11.8-billion North Hub project in Indonesia.
The company held a first steel-cutting ceremony on Thursday to mark the start of construction of a Floating Production, Storage and Offloading (FPSO) vessel that will process gas from 16 wells at the Geng North and Gehem fields.
The two fields form the North Hub project in Indonesia’s Kutai Basin, offshore Borneo. The project is targeted to begin production in 2028.
Production is expected to reach 1-billion cubic feet of gas a day and 80,000 barrels of condensate a day by the fourth quarter of 2028.
Of the project’s total $11.8-billion investment, approximately $2.9-billion will be allocated to developing the FPSO, according to Djoko Siswanto, head of Indonesia’s upstream oil and gas regulator SKK Migas.
Eni North Ganal executive Mirko Araldi said the project demonstrated the companies’ confidence in Indonesia’s energy sector and their long-term commitment to investing and creating value in the country.
