Saipem has secured a contract for the engineering, procurement, construction and installation (EPCI) of 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 company established by Eni and Petronas. The award was made to Saipem, through its subsidiary PT Saipem Indonesia, in a joint venture with PT Tripatra Engineers and Constructors.

Saipem‘s share of the contract is valued at approximately $2 billion. The project is expected to be completed over 48 months.

The scope of work includes project management, detailed engineering, procurement of materials, fabrication, construction, installation, commissioning and start-up of the FPSO.

The Kutei FPSO project forms part of the Kutei North Hub Development, which includes a subsea development connected to the new FPSO, a dedicated gas export pipeline to the Bontang LNG Plant, and domestic gas supply through the existing East Kalimantan System.

Saipem stated that the contract qualifies as a related party transaction under the applicable Consob Regulation because it was awarded by Eni North Ganal, a subsidiary of Searah Ltd., which is jointly controlled by Eni and Petronas. The company said the transaction falls within the applicable exclusion for ordinary transactions carried out under market-equivalent or standard conditions.