Project Overview

The Kutei FPSO is the centrepiece of the Kutei North Hub Field Development Project. It is located in the Kutei Basin offshore East Kalimantan, Indonesia. The FPSO will process more than 1 billion cubic feet of gas per day (approximately 10.3 bcm/year) and 90,000 barrels of condensate per day. It has a storage capacity of 1.4 million barrels.

On July 7, 2026, Saipem, in a joint venture with PT Tripatra Engineers and Constructors, was awarded the EPCI contract for the Kutei FPSO by Eni North Ganal. The 48-month execution scope covers project management, detailed engineering, procurement, fabrication, construction, installation, commissioning, and start-up of the FPSO unit. 

The development involves 16 production wells tied back to the new FPSO via subsea infrastructure, with produced gas exported via a dedicated pipeline to the Bontang LNG Plant. The domestic gas is delivered through the existing East Kalimantan System pipeline network. 

Kutei FPSO Project Location

The Kutei FPSO project is located offshore in the Kutei Basin, East Kalimantan, Indonesia. The development includes a subsea system tied back to a new FPSO, a dedicated gas export pipeline to the Bontang LNG Plant, and domestic gas deliveries through the existing East Kalimantan System.

Project Background

The Kutei North Hub Development encompasses four gas and condensate fields across two licence areas: Geng North and Gehem in the Ganal licence, and Gendalo and Gandang in the Rapak licence. All four fields are in the Kutei Basin, Indonesia's most prolific hydrocarbon basin and the location of the country's long-running East Kalimantan gas production complex. 

The Indonesian government approved development plans for the Geng North, Gehem, Gendalo, and Gandang fields in August 2024, simultaneously granting 20-year extensions of the Ganal and Rapak licences. These approvals were the enabling conditions for the Kutei North  Hub to proceed. 

Saipem's involvement leverages its subsidiary PT Saipem Indonesia's established local capabilities in East Kalimantan, its engineering and fabrication infrastructure in the region, and its partnership with PT Tripatra Engineers and Constructors, an Indonesian engineering firm with strong Pertamina-group connections and a long track record in Indonesian energy infrastructure. 

Stakeholder Details

Kutei FPSO Project Cost

The Kutei FPSO project is being executed under a contract valued at approximately USD 2 billion.

Project Timeline

Design & Engineering Details

Conclusion

The Kutei FPSO project is a major gas development project in Indonesia. It is currently in the execution phase, with Saipem being the EPCI contractor. The FPSO vessel is positioned to become the central offshore production hub for the wider Kutei North Hub. 

It supports gas export to the Bontang LNG Plant and domestic supply through East Kalimantan’s pipeline network. The project reflects continued investment in deepwater gas resources in the Kutei Basin and is expected to strengthen Indonesia’s future gas supply balance once completed.

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