Malaysian state-owned energy company Petronas said that its subsidiary PC North Madura II has taken a final investment decision (FID) on the Hidayah field development in Indonesian waters.
The field is located in the North Madura II Contract Area offshore East Java.
Petronas, through its subsidiary, holds a 100% participating interest in the North Madura II production sharing contract (PSC).
The development plan for the Hidayah field includes drilling production wells, supported by an unmanned integrated wellhead and central processing platform.
Additionally, the project features a floating storage and offloading (FSO) unit with living quarters and a central control room to ensure operational integrity and efficiency.
Petronas executive vice president and upstream CEO Mohd Jukris Abdul Wahab said: “This milestone underscores PETRONAS’ unwavering commitment to supporting the Government of Indonesia’s target of achieving energy self-sufficiency. We are grateful for the continued support of the host authority and look forward to close collaboration as we progress the Hidayah field development.”
The Hidayah field development builds on an oil discovery made in February 2021 at the Hidayah-1 exploration well. This well, spudded in January 2021, reached a depth of 2,739m and identified an oil-bearing carbonate reservoir within the Ngimbang formation.
The well demonstrated a production rate of approximately 2,100 barrels of oil per day (bopd), with further assessments confirming its potential.
In January 2023, the Indonesian government approved the plan of development I (POD I) for the Hidayah field.
The field, situated about 6km north of Madura Island, has been identified as holding reserves estimated at 88.55 million stock tank barrels (MMSTB). The reserves were confirmed after drilling three exploration wells, including Hidayah-1.
Its development is projected to involve an investment of approximately $926m, excluding sunk costs. Operating costs, including taxes, are estimated at around $2bn over the project’s lifecycle, with abandonment and site restoration costs expected to reach $201m.
Production from the Hidayah field is scheduled to commence in early 2027, with an initial output forecast of 8,973bopd.
Peak production, estimated at 25,276 barrels per day, is expected to occur in 2033. The field is projected to remain in operation until 2041, contributing approximately $2.1bn to Indonesia’s state revenue over its operational period.
Petronas operates multiple PSCs across Indonesia, including Ketapang, North Madura II, and North Ketapang in East Java, and the Bobara PSC offshore West Papua. The Malaysian company is also involved as a joint venture partner in five PSCs located in Sumatra, the Natuna Sea, East Java, and East Indonesia.
