en.Wedoany.com Reported - Italian engineering and offshore services company Saipem, through its subsidiary PT Saipem Indonesia in a joint venture with PT Tripatra Engineers and Constructors, has been awarded an engineering, procurement, construction, and installation (EPCI) contract for a floating production, storage, and offloading (FPSO) vessel for the Kutei North Hub field development project in the Kutei Basin, East Kalimantan, Indonesia.

The development project plans to drill 16 production wells at water depths ranging from 1,700 to 2,000 meters and install a subsea production system connected to a newbuild FPSO. The FPSO is designed with processing capacity to handle over 1 billion standard cubic feet of natural gas per day and 90,000 barrels of condensate, with a storage capacity of 1.4 million barrels.

The total value of the EPCI contract for the project is approximately $2 billion, covering Saipem's scope of work. The contract was awarded by Eni North Ganal, an entity controlled by Eni and Petronas through the business combination company Searah.

According to Saipem, the project execution period is expected to be 48 months, including project management, detailed engineering, material procurement, manufacturing, construction, and installation activities, as well as commissioning and startup of the FPSO unit. The Kutei FPSO project is part of the overall Kutei North Hub development, which includes a subsea development system tied back to the new FPSO, a dedicated gas export pipeline to the Bontang LNG plant, and gas supply to domestic users through the existing East Kalimantan system.

Saipem stated that this contract further strengthens its position in the floating production sector, leveraging its combination of engineering and local manufacturing capabilities as well as expertise in rapid project execution. This award comes shortly after Saipem disclosed the sale of its stake in Saipem (SAS) in Saudi Arabia to ADES, marking the end of its shallow-water drilling operations in the country and continuing its transition toward deepwater operations.