Italian energy services contractor Saipem, in joint venture with PT Tripatra Engineers and Constructors, has been awarded a contract for the engineering, procurement, construction and installation (EPCI) of a floating production storage and offloading (FPSO) vessel for Eni's Kutei North Hub Field Development Project offshore Indonesia, according to Splash247. Saipem's share of the contract is valued at approximately $2 billion.
Contract Scope and Value
The contract was awarded by Eni North Ganal, a company controlled by Searah — the business combination company established by Eni and Petronas — to Saipem's Indonesian arm, PT Saipem Indonesia. The project execution has an estimated duration of 48 months and includes project management, detailed engineering, procurement of materials, fabrication, construction and installation activities, as well as commissioning and start-up of the FPSO unit, the source reported.
Project Location and Partners
The Kutei FPSO project is part of the larger Kutei North Hub Development, located in the Kutei Basin, East Kalimantan, Indonesia. The development comprises a subsea development tied back to a new FPSO, a dedicated gas export pipeline to the Bontang LNG Plant and domestic gas users via the existing East Kalimantan System. The joint venture between Saipem and PT Tripatra will handle the full EPCI scope, leveraging local engineering and construction capabilities.
| Project Component | Description (per source) |
|---|---|
| Subsea development | Tied back to new FPSO |
| FPSO | Newbuild unit for Kutei North Hub |
| Gas export pipeline | Dedicated line to Bontang LNG Plant and domestic users via East Kalimantan System |
Strategic Context
This award underscores continued investment in Indonesian offshore gas infrastructure, with Eni and Petronas collaborating through Searah. The FPSO will be key to developing the Kutei North Hub's gas resources, supporting both LNG export via Bontang and domestic supply. The 48-month execution timeline implies first production possibly in the early 2030s, although the source does not specify a start-up date. The contract also highlights Saipem's presence in the Southeast Asian offshore market, particularly in floating production systems.
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