Jakarta. Indonesia is aiming to bring the $15 billion (Rp 269.5 trillion) North Hub Development Project, a flagship offshore gas venture, onstream in the fourth quarter of 2028 as it accelerates efforts to meet ambitious oil and gas production targets by the end of the decade.

The project, designated as a National Strategic Project, is expected to produce 1 billion standard cubic feet of gas per day (1 Bscfd) and 80,000 barrels of condensate per day, while creating at least 8,000 jobs.

Djoko Siswanto, head of upstream oil and gas regulator SKK Migas, said the North Hub project is expected to become a key contributor to the government's goal of producing 1 million barrels of oil per day and 12 billion cubic feet of gas per day by 2030.

"We hope this project will not only support but also become one of the main drivers in achieving the government's 2030 national production targets of 1 million barrels of oil per day and 12 billion cubic feet of gas per day," Djoko said during the first steel-cutting ceremony for the Bahtera Haluan Lestari floating production, storage, and offloading (FPSO) facility in Tanjung Balai Karimun, Riau Islands, on Friday.

The North Hub Development Project is an ultra-deepwater upstream development that integrates the Geng North and Gehem gas fields in the Kutai Basin, offshore East Kalimantan in the Makassar Strait.

The project carries a total investment of $15 billion, including $3 billion for the construction of the FPSO vessel and $12 billion in field development capital expenditure. Construction officially entered a new phase with the first steel cut for the FPSO topside at a domestic fabrication yard in Tanjung Balai Karimun.

Djoko said the scale of the investment reflects continued international confidence in Indonesia's upstream oil and gas sector. He added that the involvement of Indonesian fabrication companies demonstrates the country's growing capability to execute large-scale, technologically advanced offshore energy projects.

"The North Hub Development Project in the Makassar Strait is a national strategic upstream oil and gas project that will strengthen Indonesia's energy security while driving economic growth, creating jobs, and enhancing the capacity of the domestic offshore fabrication industry," he said.

Mirko Araldi, managing director of Eni North Ganal Ltd, reaffirmed the company's commitment to achieving first gas production in the fourth quarter of 2028. He said the project's transition into the construction phase reflects close collaboration among government agencies, contractors, and industry partners to secure reliable energy supplies for Indonesia.

The Energy and Mineral Resources Ministry said it will continue to accelerate the development of strategic oil and gas fields, particularly natural gas projects, which the government sees as a transition fuel in Indonesia's shift toward a cleaner energy system.

Officials said completing the North Hub project on schedule will be critical to strengthening the country's energy security and helping Indonesia achieve its 2030 oil and gas production targets.