Eni, Petronas commission FPSO for Kutei Hub North gas project offshore Indonesia

The Saipem/PT Tripatra joint venture will build and install the vessel in an estimated four-year timeframe.
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July 7, 2026
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Why this news matters:

  • The award advances development of a major new offshore gas project in Indonesia, supporting efforts to bring additional gas supplies to both domestic markets and LNG exports through the Bontang LNG plant. 

  • The Kutei North Hub development underscores continued investment in large-scale FPSO-based gas projects in Southeast Asia, with a newbuild vessel serving as the hub for a subsea tieback development. 

  • The roughly $2-billion contract highlights sustained demand for offshore engineering and construction services, with execution expected to span four years from detailed engineering through installation and startup. 

 

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Searah, the newly formed Far East joint venture between Eni and Petronas, has ordered a newbuild FPSO for the Kutei North Hub development in the Kutei Basin offshore East Kalimantan, Indonesia.

PT Saipem Indonesia, in partnership with PT Tripatra Engineers and Constructors, will supply and install the FPSO under the EPCI contract, awarded by Searah subsidiary Eni North Ganal. Saipem estimates its share of the program at about $2 billion.

The work scope should take four years to complete, including project management, detailed engineering, materials procurement, fabrication, construction and installation activities, and finally commissioning and startup of the FPSO.

Kutei North Hub is a subsea development tied back to the FPSO, with a gas export pipeline to the onshore Bontang LNG plant and the domestic gas network via the East Kalimantan System.

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About the Author

Jeremy Beckman
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Jeremy Beckman

Editor, Europe

Jeremy Beckman has been Editor Europe, Offshore since 1992. Prior to joining Offshore he was a freelance journalist for eight years, working for a variety of electronics, computing and scientific journals in the UK. He regularly writes news columns on trends and events both in the NW Europe offshore region and globally. He also writes features on developments and technology in exploration and production.

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