Saipem consortium lands $1.2bn BP contract in Indonesia

Italy’s Saipem and its Jakarta-based consortium partner Meindo Elang Indah, have secured a $1.2bn contract from supermajor BP as part of its gas project in Indonesia known as Tangguh UCC.

Tangguh UCC, which comprises the Ubadari gas field development, enhanced gas recovery through carbon capture, utilisation and storage (CCUS) and onshore compression, expands and utilises existing infrastructure at the Tangguh LNG plant in Papua Barat, Indonesia.

Production at the Ubadari field is expected to start in 2028. The gas coming in from the field will undergo a CO2 separation process and then be sent into an offshore platform for re-injection into the reservoir, helping extract additional natural gas resources.

Saipem’s work scope includes the engineering, procurement, construction and installation of two wellhead production platforms, a wellhead platform for the re-injection of CO2 and about 90 km of associated pipelines.

The platforms will be fabricated locally in Karimun, Saipem’s largest yard worldwide and one of the largest in the Southeast Asian region, with over 5,000 employees and approximately 1.4m sq m area including the marine base and docks.

Saipem’s share of the contract is worth about $1bn.

“The award of this important contract in Indonesia consolidates Saipem’s position in the segments of natural gas and of CO2 capture and storage projects, thanks to a unique combination of world-class assets with engineering and technological know-how,” the Milan-listed company said in a release.