Saipem Bags 2 Contracts for Indonesia's Tangguh LNG Expansion Project

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Italy's Saipem reported Thursday that the company has bagged two contracts for onshore and offshore work on the Tangguh liquefied natural gas (LNG) Expansion Project in Indonesia's Papua Barat Province from operator BP Berau Ltd. -- a subsidiary of BP plc. -- for completion in 2020.

The first contract is for the engineering, procurement, construction and installation (EPCI) of offshore facilities, consisting of two unmanned platforms and subsea pipelines. Saipem will contribute to local content enhancement, as specified by the requirements of Indonesia's upstream regulator SKK Migas, through work at its Karimun fabrication yard.

BP Berau has awarded the second contract to CSTS, a joint venture of Indonesia's engineering procurement and construction contractor Tripatra and Suluh Ardhi Engineering, Japan's Chiyoda and Saipem. The contract is for the construction of an onshore LNG process train with a liquefaction capacity of 3.8 million tons per annum, utilities, offsites, an LNG jetty and associated infrastructure.

"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, and also represent recognition of the value of our strong embedded safety culture, our commitment to the development of local content, and our integrated sustainability model," Saipem CEO Stefano Cao said in the press release.

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