Saipem, Worley and other majors win FEED roles in INPEX’s Indonesian LNG project

August 4, 2025, by Dragana Nikše

INPEX Masela, a subsidiary of Japan’s INPEX, has started the activities relating to the front end engineering and design (FEED) portion of work at the liquefied natural gas (LNG) project it operates in Indonesia’s Masela block.

Drillship for the Abadi LNG project; Source: Inpex

As disclosed by INPEX, the FEED work for the Abadi LNG project in the Masela block entails reviewing and defining the specifications of the facilities that will produce and process hydrocarbons from the Abadi gas field, as well as the onshore LNG plant (OLNG).

The FEED work will entail four segments, namely floating production, storage and offloading (FPSO), subsea umbilicals, risers and flowlines (SURF), gas export pipeline (GEP), and OLNG. Contracts for all segments but OLNG have been awarded, with each one including a scope related to carbon capture and storage (CCS).

*Abadi LNG project concept diagram; Source: INPEX*

The FPSO contract package entails what INPEX calls a dual FEED method involving two contractor consortia that will work in parallel but separately to ensure a competitive environment. The Japanese player plans to employ the same method to the OLNG contract package.

In the first consortium, Technip Engineering Indonesia is the lead contractor, while Technip Indonesia and JGC Indonesia are consortium members. In the second, Saipem Indonesia is the lead contractor, and Tripatra Engineers & Constructors, Tripatra Engineering, and McDermott Indonesia are consortium members.

As explained, FEED work and engineering, procurement and construction (EPC) work will be awarded to the same contractor consortium, effectively assigning EPC work to the consortium that delivers FEED services that the operator deems are technically and commercially superior.

Additionally, Worley SEA Indonesia has been selected as the contractor for the GEP and SURF packages. Its scope of work for the former encompasses reviewing and defining the specifications of GEP from FPSO to OLNG, and the latter reviewing and defining the specifications of SURF.

Inpex Masela is the operator of the Abadi LNG project with a 65% stake, with partners Pertamina (20%) and Petronas (15%) coming on board in 2023 after Shell decided to divest its stake in the development. The project is expected to contribute to improving energy security in Indonesia, Japan, and other Asian countries and generate a stable supply of lower-carbon energy over the long term.

Said to be one of the largest projects in Asia, Abadi LNG is expected to produce approximately 9.5 million tons per annum (mtpa) of LNG by liquefying natural gas from the Abadi gas field at an onshore facility. This is said to equal over 10% of Japan’s annual LNG imports. Additionally, the developer aims to produce up to 35,000 barrels of condensate per day and approximately 150 million cubic feet of natural gas per day.

While the development plan for the project was approved by the Indonesian government in 2019, Inpex submitted a revised one in April 2023, which was approved in December 2023. The new plan incorporates a CCS component.