BP picks Saipem for Indonesian mega-project

JAKARTA, November 27, 2024 – Saipem and its consortium partner, Indonesian EPCI company PT Meindo Elang Indah, have been awarded an offshore EPCI contract by BP for the Tangguh UCC project in Papua Barat, Indonesia, Saipem announced on Tuesday.

The award comes just days after BP’s announcement of an FID on Tangguh UCC, which is expected to command total investments of up to USD 7 billion and unlock around 85 bcm (3 tcf) of gas resources.

The project comprises the development of the Ubadari offshore gasfield, enhanced gas recovery through CCUS and onshore compression. Saipem’s scope of work includes EPCI work on two wellhead production platforms, a wellhead platform for the re-injection of carbon dioxide and approximately 90 kilometres of associated pipelines.

Natural gas produced from Ubadari will be transported to an onshore LNG plant where carbon dioxide will be separated and sent into an offshore platform for re-injection into the reservoir, helping to extract additional natural gas resources.

The value of the contract is approximately USD 1.2 billion, with Saipem’s share amounting to approximately USD 1 billion, according to the announcement.

Photo of Tangguh complex courtesy of BP

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