Saipem, through its subsidiary PT Saipem Indonesia and in joint venture with PT Tripatra Engineers and Constructors, has secured an Engineering, Procurement, Construction and Installation (EPCI) contract for a Floating Production, Storage and Offloading (FPSO) unit for the Kutei North Hub Field Development Project in the Kutei Basin, East Kalimantan, Indonesia.
The contract, valued at approximately USD 2 billion for Saipem’s share, was awarded by Eni North Ganal, a company controlled by Searah Ltd., the joint venture entity established by Eni and Petronas.
The project is expected to be completed over an estimated 48-month period and covers project management, detailed engineering, procurement, fabrication, construction, installation, commissioning and start-up of the FPSO unit.
The Kutei FPSO forms part of the broader Kutei North Hub Development, which includes a subsea production system connected to the new FPSO, along with a dedicated gas export pipeline linking the development to the Bontang LNG Plant and domestic gas consumers through the existing East Kalimantan gas network.
According to Saipem, the contract strengthens the company’s position in the floating production sector by combining its engineering expertise with local fabrication capabilities and experience in delivering fast-track projects.
Saipem also stated that, under Italy’s Consob Regulation on related-party transactions, the contract qualifies as a related-party transaction because it was awarded by Eni North Ganal, a subsidiary of Searah Ltd., which is jointly controlled by Eni and Petronas. The company said the transaction is classified as one of “greater importance” but falls within the applicable regulatory exclusion for ordinary transactions conducted under market-equivalent or standard conditions.
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