Saipem, a global leader in engineering and construction services for the energy sector, today confirmed its involvement in a competitive dual front-end engineering design (FEED) phase for the floating production, storage, and offloading (FPSO) module of the Abadi liquefied natural gas (LNG) project in Indonesia’s Masela block. This strategic contract award, granted by project operator Inpex Masela, positions Saipem to potentially secure the subsequent engineering, procurement, and construction (EPC) phase.
The FEED work is being conducted through a dual FEED approach, where two separate contractor consortia will independently develop technical solutions. Saipem, through its subsidiary PT Saipem Indonesia, is leading one of these consortia, which includes PT Tripatra Engineers & Constructors, PT Tripatra Engineering, and PT McDermott Indonesia. The rival consortium is led by Technip Engineering Indonesia. This competitive process is designed to ensure the most robust and commercially viable solution is selected for the project’s next stage.
Saipem’s consortium will be responsible for reviewing and defining the technical specifications for the offshore production facilities. The winning consortium, based on its FEED proposal, will be awarded the lucrative EPC contract. Saipem emphasized that the project’s design for all major engineering packages, including the FPSO, onshore LNG plant, subsea systems, and gas export pipeline, integrates carbon capture and storage (CCS) components, aligning with modern sustainability goals.
The award of this contract is a significant development for Saipem, reinforcing its global leadership in FPSO and FLNG projects, as well as its expertise in low-carbon and CCUS technologies. “The award of the dual FEED contract by Inpex is strategically relevant for Saipem,” a company statement noted, highlighting the opportunity to extend its role to the EPC stage.
The Abadi LNG project is operated by Inpex Masela (65% interest), with partners Pertamina (20%) and Petronas (15%). Following a revised development plan that incorporates CCS, the project is moving forward with an annual production capacity of 10.5 million tons of gas equivalent. This includes approximately 9.5 million tons of LNG, which is a significant volume for the regional market, particularly Japan, and 35,000 barrels per day of condensate.
