Saipem, through its subsidiary PT Saipem Indonesia and in a joint venture with PT Tripatra Engineers and Constructors, obtained an EPCI contract to develop a floating production, storage and offloading unit for the Kutei North Hub project in East Kalimantan, Indonesia.
The agreement, valued at approximately $2 billion for Saipem’s stake, was awarded by Eni North Ganal, a company controlled by Searah Ltd., a company linked to the business combination between Eni and Petronas.
A crucial FPSO for the development of Kutei North Hub
The Kutei FPSO contract covers engineering, materials procurement, manufacturing, construction, installation, commissioning, and startup of the unit. Execution is planned for an estimated period of 48 months, with a scope that requires technical coordination, local manufacturing capacity, and experience in highly complex offshore projects.
Furthermore, the unit will be part of the Kutei North Hub Field Development, located in the Kutei Basin. This project includes subsea infrastructure connected to a new FPSO and a dedicated pipeline to export gas to the Bontang LNG plant and domestic users via the existing East Kalimantan system.
Offshore gas and subsea infrastructure in Indonesia
The development strengthens energy activity in the deep waters of Southeast Asia. According to available technical information, the project considers producing wells at depths of between 1,700 and 2,000 meters, along with underwater systems connected to the FPSO.
Likewise, the floating platform will play a central role in the processing and handling of gas and condensate production. This type of unit allows for the operation of offshore fields far from the coast, the storage of hydrocarbons, and their transfer via vessels or export infrastructure.
Saipem strengthens its floating production portfolio
For Saipem, the contract strengthens its presence in the floating production segment, a market where integration between engineering, construction, offshore installation and accelerated execution is crucial.
The Italian company, specializing in large-scale onshore and offshore energy and infrastructure projects, owns shipyards, offshore construction vessels, and drilling platforms. Its involvement in the Kutei FPSO project also highlights the use of local capabilities in Indonesia, particularly through PT Saipem Indonesia.
Eni, Petronas and the energy advance in East Kalimantan
The project is linked to Eni North Ganal, a subsidiary of Searah Ltd., a business structure jointly controlled by Eni and Petronas. The involvement of these companies reflects their interest in expanding gas infrastructure in Indonesia, connecting offshore production with the LNG chain and domestic supply.
With this contract, the Kutei North Hub project advances as a key component for the development of offshore gas in East Kalimantan, while Saipem adds a new large-scale order in the international FPSO market.
Source: Saipem
Photo: Shutterstock
