The Upstream Oil and Gas Regulatory Task Force (SKK Migas) has reported progress on the development of Gebang Gas Field in Lap Sicanggang, North Sumatra, a joint venture between Japan Petroleum Exploration (Japex) and Energi Mega Persada (EMP) with a 50-50 partnership.
“Japex and EMP management have updated us on the Gebang Block project. Construction of nine bridges to the drilling area is underway, and the first well spud is scheduled for March 2026,” Head of SKK Migas, Djoko Siswanto, said on Tuesday, September 9, 2025.
The project is expected to serve as a key catalyst for the local economy. During its first phase, it will employ around 500 workers, expanding to about 1,000 in the second phase, with only five Japanese expatriates directly involved.
The field is targeted to begin production by March 2027, starting at 50 million standard cubic feet per day (MMSCFD) before ramping up to over 100 MMSCFD in the second phase. Total investment, covering both capital expenditure (Capex) and operational expenditure (Opex), is estimated at around US$1 billion (Rp16.5 trillion).
Djoko noted, however, that the project faces economic challenges, with the current internal rate of return (IRR) at 10 percent, as gas prices remain at around US$6.1 per Million British Thermal Units (MMBTU).
“God willing, this project will proceed smoothly and bring benefits to the nation and the people of Indonesia,” Djoko said.
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