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The Indonesian offshore development is scheduled for 2027 startup, requiring extensive pressure vessels, heat exchangers, and clad materials for sour gas and seawater service.
Kuala Lumpur – July 23, 2026
Petronas is advancing the Hidayah field development in the North Madura II Contract Area, offshore East Java, toward first oil. The project, valued at approximately $920 million, is scheduled to come on stream in 2027.
For manufacturers of clad plates, clad tube sheets, and clad dish heads, the project represents a significant procurement opportunity. Offshore platforms and FSO units in Southeast Asia's corrosive marine environment typically require integrally clad materials for pressure vessels, heat exchangers, and piping systems—particularly where produced fluids contain H₂S or CO₂.
The Hidayah field was discovered in 2021, with estimated recoverable reserves of approximately 88.55 million barrels of oil. The development plan includes drilling multiple production wells, supported by an unmanned integrated wellhead and central processing platform. A Floating Storage and Offloading (FSO) unit equipped with living quarters and a central control room is also part of the scope.
Production design capacity is expected to reach approximately 3.27 million barrels per year by 2027, ramping up to about 9.23 million barrels per year by 2033. The field is a conventional offshore development operated by PC North Madura II Ltd., a wholly-owned subsidiary of Petronas, which holds 100% participating interest in the production sharing contract.
Pressure Vessels and Separators: The central processing platform will require multiple pressure vessels for oil, gas, and water separation. These vessels are typically specified with clad plates—carbon steel backing (such as SA516 Gr.70) with stainless steel or nickel alloy cladding (316L, 410S, or Inconel 825) to resist corrosion from produced fluids. Clad dish heads and clad baffle plates are essential components in separator vessels, providing both structural integrity and corrosion resistance.
Heat Exchangers: The FSO unit and platform will use heat exchangers for crude heating, cooling, and gas compression. Clad tube sheets with precision-drilled holes are critical for tube bundle support and sealing. Common specifications call for flatness tolerances within 0.1mm and strict hole alignment requirements.
Piping and Flowlines: Subsea flowlines and risers from wellheads to the platform require clad pipes or internally clad fittings to handle corrosive well fluids and seawater exposure. NACE MR0175/ISO 15156 compliance is typically required for sour service applications.
The Hidayah development aligns with Indonesia's broader energy strategy to achieve self-sufficiency. The government has been actively advancing multiple offshore projects across the archipelago. In July 2026, President Prabowo Subianto officiated the groundbreaking of the $21 billion Abadi Masela LNG megaproject in Maluku, which had been stalled for nearly three decades. That project is designed to produce 9.5 million tonnes of LNG per year, with 60% of output reserved for domestic use.
The Tuna field in the North Natuna Sea, another long-stalled project, is also showing signs of renewed activity.
The Hidayah project is one of several offshore developments in Southeast Asia creating sustained demand for clad plates and machined components. Petronas's existing operations in the region, including the Ketapang, North Madura II, and North Ketapang PSCs offshore East Java, suggest a pipeline of opportunities for suppliers who can deliver clad materials meeting international standards (ASME SA-264, SA-265, NACE MR0175) and provide custom machining services for tube sheets, dish heads, and baffle plates.
Fugo Tech is a manufacturer of clad plates and machined components for pressure vessels and heat exchangers. Core products include clad tube sheets, clad dish heads, and baffle plates. Complementary materials cover titanium, nickel alloy, and stainless steel. ISO 9001 and PED certified. www.fugo-tech.com | sales@fugo-tech.com.
Fugo Tech is focused on the manufacturing of clad metal plate and distributes the Stainless Steel, Titanium, Nickel Alloy, Zirconium and other non-ferrous metal pipes, fittings, and flanges.
