Saipem and PT Tripatra Engineers and Constructors secure $2B EPC contract for Kutei North Hub FPSO in Indonesia

Type: Supply Agreement · Technology: Oil Gas · Country: Indonesia · Value: $2B · Announced: 2026-07-07

Italian energy services group Saipem, through its Saipem Indonesia subsidiary and in a joint venture with PT Tripatra Engineers and Constructors, secured a $2 billion engineering, procurement, construction, and installation (EPC) contract for a floating production, storage, and offloading (FPSO) unit for the Kutei North Hub development in Indonesia. The contract, awarded by Eni North Ganal—a company controlled by Searah, the business combination entity established by Eni and Petronas—covers project management, detailed engineering, material procurement, fabrication, construction, installation, commissioning, and start-up of the FPSO. The Kutei FPSO is part of the broader Kutei North Hub development in the Kutei Basin, East Kalimantan, which includes a subsea development tied back to the FPSO and a dedicated gas export pipeline connecting to the Bontang LNG Plant and domestic gas users via the existing East Kalimantan System. The project is expected to take approximately 48 months to execute, with execution starting in July 2026. This deal strengthens Saipem’s position in Southeast Asia’s offshore gas sector, particularly in integrated FPSO and subsea infrastructure, while supporting Eni and Petronas’ strategic expansion in Indonesia’s gas market.

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