Saipem lands offshore construction deal on BP’s project in Indonesia

Italian oil and gas contractor Saipem has been awarded two new engineering and construction (E&C) contracts in Indonesia on the BP-operated Tangguh LNG expansion project.

Tangguh LNG is a multinational project involving the development of six gas fields in the Wiriagar, Berau and Muturi Production Sharing Contracts (PSC) in Bintuni Bay, Papua Barat.

Saipem said on Wednesday that the contracts were awarded by BP Berau, the operator of the Tangguh LNG project, on behalf of the other production sharing contract parties.

The first contract is for the engineering, procurement, construction and installation of offshore facilities, consisting of two unmanned platforms and subsea pipelines.

The company said that it will contribute to local content enhancement, including through its own Karimun fabrication yard, in accordance with the requirements of Indonesia’s upstream oil and gas regulator, SKK Migas.

Also, CSTS, a joint operation led by Indonesian EPC Contractor Tripatra with Chiyoda, Saipem, and Suluh Ardhi Engineering, was awarded a construction contract for an onshore LNG process train with a liquefaction capacity of 3.8 million tons per annum, utilities, offsites, an LNG jetty and associated infrastructure.

Saipem said that the completion of both projects is expected in 2020.

Saipem CEO, Stefano Cao, said: “We are very pleased to have secured these two significant awards for the Tangguh LNG Expansion Project. These achievements represent Saipem’s capacity to contribute to satisfying South Asia’s growing energy demand through our diversified EPCI capabilities in offshore platform construction & installation and onshore LNG process trains.”

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