Saipem has secured a contract worth approximately US$2 billion for its share of the engineering, procurement, construction, and installation (EPCI) of a floating production, storage and offloading (FPSO) unit for the Kutei North Hub field development project offshore Indonesia.
The company announced on July 7 that the contract was awarded by Eni North Ganal, a company controlled by Searah Ltd., the joint venture established by Eni and Petronas. The project is located in the Kutei Basin in East Kalimantan and will be executed through Saipem’s subsidiary, PT Saipem Indonesia, in partnership with PT Tripatra Engineers and Constructors.
The 48-month project includes project management, detailed engineering, procurement, fabrication, construction, installation, commissioning and start-up of the FPSO.
“This award further strengthens Saipem’s positioning in the floating production segment, leveraging its unique combination of engineering and local fabrication capabilities, as well as its well-established expertise in fast-track project execution,” the company said.
The floating production facility will support the broader Kutei North Hub Development, which includes a subsea production system connected to the new FPSO and a dedicated gas export pipeline linking the development to the Bontang liquefied natural gas (LNG) plant and domestic gas users through the existing East Kalimantan gas network.
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Saipem said the Kutei North Hub project forms part of continued offshore development efforts in Indonesia, where operators are advancing new oil and gas infrastructure to support regional energy supply.
Saipem is a global leader in the engineering and construction of major energy and infrastructure projects, both offshore and onshore. The company has five fabrication yards, an offshore fleet of 17 construction vessels, and 12 drilling rigs, including nine that it owns.
In Guyana, Saipem has been awarded subsea engineering, procurement, construction and installation (EPCI) work for every ExxonMobil-operated development in the Stabroek Block, including Liza 1, Liza 2, Payara, Yellowtail, Uaru, and Whiptail projects. The company also operates fabrication facilities in Guyana, where it has manufactured subsea equipment locally in support of ExxonMobil’s developments.
