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Petroliam Nasional Bhd (Petronas), through its subsidiary PC North Madura II Ltd., has reached the final investment decision (FID) for the development of the Hidayah oil field located in the North Madura II Contract Area offshore East Java, Indonesia. This decision underscores Petronas' commitment to bolstering Indonesia's energy production capabilities.
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The Hidayah field was initially discovered in February 2021 when the Hidayah-1 exploration well encountered an oil-bearing carbonate reservoir within the Ngimbang formation. The well was drilled to a depth of 2,739 meters and demonstrated a production rate of approximately 2,100 barrels of oil per day (bopd) with good crude quality.
The approved development plan encompasses the drilling of production wells supported by an unmanned integrated wellhead and central processing platform. Additionally, a Floating Storage and Offloading (FSO) unit equipped with living quarters and a central control room will be established to ensure operational efficiency and safety.
According to Indonesia's upstream oil and gas regulator, SKK Migas, the Hidayah field is projected to commence production in the first quarter of 2027, with an initial output of approximately 8,973 bopd. Peak production is anticipated to reach 25,276 bopd by 2033, and the field is expected to remain operational until 2041, contributing significantly to Indonesia's state revenue over its lifespan.
The development of the Hidayah field is estimated to require an investment of approximately $926 million, excluding sunk costs, with operating costs projected at around $2 billion over the project's lifecycle.
Abandonment and site restoration costs are expected to be about $201 million.
Petronas' Vice President of International Assets of Upstream, Mohd Redhani Abdul Rahman, emphasized the significance of this milestone, stating that it builds on the momentum of their 2021 oil discovery in the North Madura II Contract Area and positions the company to play a more strategic role in supporting the region's growing energy needs.
In developing the Hidayah field, Petronas plans to utilize clad plates in the construction of the processing facilities. Clad plates, which consist of a base metal bonded with a corrosion-resistant alloy layer, are essential in offshore oil and gas projects to enhance the durability and longevity of equipment exposed to harsh marine environments. Their application is particularly crucial in preventing corrosion and reducing maintenance costs over the operational life of the facility.
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Beyond the Hidayah project, Petronas operates several Production Sharing Contracts (PSCs) in Indonesia, including Ketapang, North Madura II, and North Ketapang offshore East Java, as well as the Bobara PSC offshore West Papua.
The company also participates as a joint venture partner in five other PSCs across onshore and offshore Sumatra, the Natuna Sea, East Java, and East Indonesia, reflecting its broad commitment to the region's energy sector.
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