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FinanceSearah begins work on Indonesia floating gas plant for North Hub
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Searah, a joint venture between Eni and Petronas, has commenced development of a floating gas processing facility for the $11.8bn North Hub project in Indonesia's Kutai Basin. A steel-cutting ceremony was held for the FPSO vessel, which will serve as a central processing unit for 16 wells in the Geng North and Gehem gas fields. Production is scheduled to begin in 2028, targeting 1 billion cubic feet of gas per day and 80,000 barrels of condensate per day. $2.9bn has been allocated for the FPSO development. Saipem, in partnership with Tripatra, won an EPCI contract for the FPSO. The project includes subsea development, gas export to the Bontang LNG plant, and domestic supply via the East Kalimantan system. Eni also recently discovered approximately 5 trillion cubic feet of gas in the Ganal block.
Source report
By: Shree Mishra Source: Offshore Technology
Searah, a joint venture between Eni and Petronas, has commenced development of a floating gas processing facility as part of its $11.8 billion (£8.85 billion) North Hub project in Indonesia.
A ceremony marking the first steel cutting for the floating production, storage, and offloading (FPSO) vessel was held, according to the Indonesian Energy and Mineral Resources Ministry.
Project Details
- The FPSO will serve as a central processing unit for 16 wells in the Geng North and Gehem gas fields.
- These fields together make up the North Hub project in the Kutai Basin, offshore Borneo.
- Production is scheduled to begin in 2028.
- Output targets by the fourth quarter of 2028:
- 1 billion cubic feet of gas per day
- 80,000 barrels of condensate per day
Investment and Contracting
According to Djoko Siswanto, head of Indonesia's upstream oil and gas regulator SKK Migas, $2.9 billion has been allocated for the development of the FPSO, out of a total investment of $11.8 billion.
Earlier this month, Saipem, via its subsidiary Saipem Indonesia and in partnership with Tripatra Engineers and Constructors, won an engineering, procurement, construction, and installation (EPCI) contract for the FPSO. The contract was granted by Eni North Ganal, which operates under Searah.
Infrastructure and Recent Discoveries
The Kutai FPSO project includes:
- Subsea field development linked to the new floating facility
- Gas export infrastructure to the Bontang LNG Plant
- Supply to domestic gas users via the existing East Kalimantan system
In April 2026, Eni discovered approximately five trillion cubic feet of gas in place with its Geliga‑1 exploration well in the Ganal block, Kutai Basin.
Executive Comment
Mirko Araldi, executive at Eni North Ganal, said:
"Today's achievement demonstrates our continued confidence in Indonesia's energy sector, as well as our long-term commitment to continue investing, growing and creating value in this country."
This article was originally created and published by Offshore Technology, a GlobalData owned brand.
Source
Yahoo FinanceWestern
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Searah begins work on Indonesia floating gas plant for North Hub