Saipem Lands $2B FPSO Deal for Offshore Gas Field in Indonesia

Tuesday, July 7, 2026

Italian energy services group Saipem, through its Saipem Indonesia subsidiary and in a joint venture with PT Tripatra Engineers and Constructors, has won a contract for a floating production, storage and offloading (FPSO) unit for the Kutei North Hub development in Indonesia.

The engineering, procurement, construction and installation contract is valued at approximately $2 billion for Saipem's share and was awarded by Eni North Ganal, a company controlled by Searah, the business combination company established by Eni and Petronas.

The project, located in the Kutei Basin in East Kalimantan, is expected to take about 48 months to execute.

The scope includes project management, detailed engineering, procurement of materials, fabrication, construction and installation activities, as well as commissioning and start-up of the FPSO.

The Kutei FPSO forms part of the wider Kutei North Hub development, which comprises a subsea development tied back to the new FPSO.

The development also includes a dedicated gas export pipeline connecting to the Bontang LNG Plant and domestic gas users through the existing East Kalimantan System.


Categories: Industry News Activity Asia Oil and Gas FPSOs

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