Saipem and Tripatra win Kutei North Hub FPSO EPCI contract
Saipem's share is approximately $2 billion for a package with an estimated 48-month execution period.
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- First published on EPC Feed
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Saipem, through PT Saipem Indonesia, and PT Tripatra Engineers and Constructors won an engineering, procurement, construction and installation contract for a floating production, storage and offloading unit at Indonesia's Kutei North Hub development. Saipem announced the award on 7 July 2026. The project is located in the Kutei Basin in East Kalimantan, with the FPSO forming part of a wider offshore development and gas export system.
The value attributable to Saipem is approximately $2 billion. The release identifies that amount specifically as Saipem's share, so it should not be presented as a disclosed total for every participant in the joint venture or the entire field development. The customer is Eni North Ganal, described as controlled by Searah Ltd., the business combination company established by Eni and Petronas. This identifies the contractual counterparty separately from the engineering joint venture performing the work.
Execution is expected to take 48 months. The scope includes project management, detailed engineering, procurement of materials, fabrication, construction, installation, commissioning and start-up of the FPSO. The estimated period is a delivery expectation in the award announcement. It does not establish that commissioning has occurred, and it should not be converted into a guaranteed operating date without a separately stated project schedule or confirmation from the developer.
The wider Kutei North Hub development includes subsea facilities connected to the new FPSO and a dedicated gas export pipeline. The gas route is intended to serve the Bontang LNG plant and domestic users through the existing East Kalimantan system. These interfaces explain the FPSO's place in the development but do not mean that every subsea component and export pipeline is part of the particular FPSO package described in Saipem's release.
Saipem highlights the combination of engineering experience and local fabrication capability behind its role in floating production projects. The company also discloses the related-party status of the contract and its treatment as an ordinary transaction on market-equivalent or standard conditions. For project tracking, the award establishes the delivery partners, the customer, the contractor's stated share of value and the FPSO execution scope. Subsequent milestones would concern engineering progress, fabrication, offshore installation and the commissioning activities included in the announced contract.
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