Saipem awarded USD 2 billion EPCI contract for Kutei FPSO in Indonesia
- Saipem, via PT Saipem Indonesia in joint venture with PT Tripatra, won the EPCI contract for an FPSO for the Kutei North Hub.
- Saipem’s share of the contract is approximately USD 2 billion.
- Project execution is estimated at 48 months and covers engineering, procurement, fabrication, construction, installation, commissioning and start-up.
- The award was made by Eni North Ganal (controlled by Searah Ltd., the Eni–Petronas business combination) and qualifies as a related-party transaction of greater importance.
Contract award and parties
Saipem, through its subsidiary PT Saipem Indonesia in joint venture with PT Tripatra Engineers and Constructors, has been awarded the 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 was awarded by Eni North Ganal, a company controlled by Searah Ltd., the business-combination entity established by Eni and Petronas.
Value and schedule
The contract is valued at approximately USD 2 billion for Saipem’s share. Project execution is estimated at 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.
Project scope within Kutei North Hub
The Kutei FPSO project is part of the Kutei North Hub Development and comprises subsea tiebacks to the new FPSO plus a dedicated gas export pipeline to the Bontang LNG Plant and supply to domestic gas users via the existing East Kalimantan System.
Related-party classification
Pursuant to Consob rules, the contract qualifies as a related-party transaction "of greater importance" with Eni North Ganal and is described as an ordinary transaction carried out at market-equivalent conditions that falls within Saipem's stated exclusions under its related-party transaction guidelines.
Source: Saipem