Searah, a joint venture between Eni and Petronas, has commenced development of a floating gas processing facility as part of its $11.8bn (£8.85bn) 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.
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The FPSO will serve as a central processing unit for 16 wells in the Geng North and Gehem gas fields, which together make up the North Hub project in the Kutai Basin, offshore Borneo.
Production from the project is scheduled to begin in 2028, with an output target of one billion cubic feet of gas per day and 80,000 barrels of condensate per day by the fourth quarter of that year.
According to Djoko Siswanto, the head of Indonesia’s upstream oil and gas regulator, SKK Migas, $2.9bn has been allocated for the development of the FPSO, out of a total investment of $11.8bn.
Eni North Ganal executive Mirko Araldi 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.”
Earlier this month, Saipem, via its subsidiary Saipem Indonesia and in partnership with Tripatra Engineers and Constructors, won a contract linked to the Kutai North Hub Field Development Project. The engineering, procurement, construction and installation contract is for the FPSO and was granted by Eni North Ganal, which functions under Searah.
The Kutai FPSO project includes subsea field development linked to the new floating facility, gas export infrastructure to the Bontang LNG (liquefied natural gas) Plant, and 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.
