Two ‘strategic’ oil & gas fields come online offshore Indonesia

Medco E&P Natuna, a subsidiary of PT Medco Energi Internasional (MedcoEnergi), has brought two oil and gas fields on stream in the South Natuna Sea off the coast of Indonesia.

The start of production from Medco Energi’s Forel and Terubuk fields in South Natuna Sea Block B at Riau Islands was officially inaugurated in a hybrid format by Prabowo Subianto, President of the Republic of Indonesia, on May 16, 2025. These two fields are considered to be “strategic” assets that will boost Indonesia’s energy security.

The event was witnessed on-site at the floating production, storage, and offloading (FPSO) Marlin Natuna by Bahlil Lahadalia, Indonesia’s Minister of Energy and Mineral Resources (ESDM), accompanied by Djoko Siswanto, SKK Migas’ Chairman; Hilmi Panigoro, President Director of MedcoEnergi; and Ronald Gunawan, President Director of Medco E&P.

Siswanto underlined: “The onstream milestone of the Forel and Terubuk Fields represents a key achievement that reflects strong synergy between the Government and Medco E&P in ensuring the continuity of national energy supply. We also appreciate the company’s commitment to high standards of occupational safety, health, and environmental protection.”

President Prabowo deemed the inauguration of production from the Forel and Terubuk fields a significant milestone in Indonesia’s efforts to achieve energy self-sufficiency, which is seen as a fundamental requirement for national independence and strength. The Forel project entails the leasing of the FPSO Marlin Natuna, described as a converted tanker and the first of its kind built entirely by Indonesian hands.

While emphasizing that Medco E&P’s start of production from these fields demonstrates Indonesia’s seriousness in building a healthy and competitive energy investment ecosystem, Minister Lahadalia pointed out: “This project holds strategic value because it is fully owned and operated by Indonesia’s own people. All the workers are Indonesian nationals, and the FPSO is 100% locally manufactured with Indonesian content (TKDN).”

With an investment of approximately $600 million, the two fields are expected to contribute to the national energy supply by producing up to 20,000 barrels of oil per day (bopd) and 60 million standard cubic feet per day (mmscfd) of gas, equivalent to a total production of approximately 30,000 barrels of oil equivalent per day (boepd).

Panigoro underscored: “We are proud to be part of strengthening Indonesia’s energy resilience. The Forel and Terubuk projects are the result of strong collaboration with the Ministry, SKK Migas, and other stakeholders, and demonstrate our commitment to safe, reliable, efficient, and sustainable oil and gas operations.”