Saipem scores $2-billion FPSO deal for Eni and Petronas’ Southeast Asian gas project

July 7, 2026, by Melisa Cavcic

Italy’s engineering, drilling, and construction services giant Saipem has won a new assignment related to a floating production, storage, and offloading (FPSO) unit destined for deployment at one of Indonesia’s major upcoming energy projects.

Saipem, through its subsidiary PT Saipem Indonesia, in joint venture with PT Tripatra Engineers and Constructors, has been awarded a contract for the engineering, procurement, construction and installation (EPCI) of an FPSO for the Kutei North Hub field development project located in the Kutei Basin, East Kalimantan, Indonesia.

The development entails drilling 16 producing wells at water depths between 1,700 and 2,000 meters and the installation of subsea systems linked to a newly built FPSO capable of processing over 1 billion standard cubic feet per day of gas and 90,000 barrels per day (bpd) of condensate, with a storage capacity of 1.4 million barrels.

The EPCI contract for the project is valued at approximately $2 billion for the Italian player’s scope of work. The deal was handed out by Eni North Ganal, a company controlled by Searah, the business combination company established by Eni and Petronas.

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According to Saipem, the project execution, with an estimated duration of 48 months, includes project management, detailed engineering, procurement of materials, fabrication, construction and installation activities, as well as commissioning and start-up of the FPSO unit.

The Kutei FPSO project is part of the Kutei North Hub development, which comprises a subsea development tied back to a new FPSO, a dedicated gas export pipeline to the Bontang LNG plant and domestic gas users via the existing East Kalimantan System.

The Italian giant claims that this award further strengthens its position in the floating production segment, leveraging its unique combination of engineering and local fabrication capabilities, as well as its expertise in fast-track project execution.

This assignment comes shortly after Saipem disclosed the sale of its shareholding in Saudi Arabian Saipem (SAS) to ADES, ending its shallow water drilling chapter in Saudi Arabia, as it continues its shift to deepwater plays.