Russian state-owned oil and gas company Zarubezhneft is set to continue the development of the Tuna Block in North Natuna Sea after UK-based Harbour Energy Group announced its departure from the project amid escalating geopolitical tensions.
The Tuna Block, currently operated by Premier Oil Tuna B.V. a subsidiary of Harbour Energy has been jointly managed with ZN Asia Ltd., a unit of Zarubezhneft. Both companies hold an equal 50 percent participating interest in the offshore block.
“Zarubezhneft will continue the development of the Tuna Block,” Djoko Siswanto, Head of the Upstream Oil and Gas Regulatory Task Force (SKK Migas), said on Monday, July 21, 2025.
The shift in operatorship follows sanctions imposed by Western countries on Russian entities, making it increasingly untenable for Harbour Energy to proceed with operations alongside a Russian partner. Despite this, the Indonesian government remains committed to seeing the Tuna Block reach production by 2028 or 2029.
Deputy for Exploration, Development and Working Area Management at SKK Migas, Rikky Rahmat Firdaus, confirmed that Harbour Energy has agreed to transfer all relevant data to Zarubezhneft to ensure a smooth transition.
However, he emphasized that Zarubezhneft will still be required to secure a new operating partner to replace Harbour Energy.
“Zarubezhneft must find a new partner to take over Harbour’s stake. There are already interested investors, though we cannot disclose names at this stage,” Rikky said.
Multi-billion dollar project
The Tuna Block is estimated to contain 100 to 150 million standard cubic feet per day (MMscfd) of natural gas. The total investment required for its full-scale development is projected at US$3.07 billion.
The investment breakdown includes US$1.05 billion in capital expenditure (excluding sunk costs), US$2.02 billion in operational expenditure up to the economic limit, and US$147.59 million for abandonment and site restoration (ASR).
To ensure project viability, the government has extended several fiscal incentives, assuming a production timeline through 2035. Under the current plan, Indonesia is expected to receive US$1.24 billion or approximately Rp18.4 trillion in gross revenue from the Tuna Block.
SKK Migas has directed Zarubezhneft to proceed with front-end engineering design (FEED) work immediately to maintain the project timeline. The government views the Tuna Block as a strategic asset to bolster domestic energy security and tap into growing natural gas demand in the region.
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