Italyโs engineering, drilling, and construction services giant Saipem has held the first steel-cutting ceremony for an integrated project operated by the Indonesian subsidiary of the U.K.-headquartered energy giant BP at its fabrication yard in Karimun, Indonesia.
An aerial view of Tangguh LNG plant; Source: BP
The ceremony marked the official start of construction activities for the Tangguh UCC project located in Papua Barat province, Indonesia. The project entails the extension of gas feed to BPโs existing liquefied natural gas (LNG) facility โ Tangguh โ through the development of the Ubadari gas field, whose production is anticipated to start in 2028.
The integrated project encompasses the production of natural gas resources from Ubadari and its transportation to an onshore LNG plant, where it will undergo a CO2 separation process.
Afterward, the captured CO2 will be sent into an offshore platform for re-injection into the reservoir, helping to unlock around 3 trillion cubic feet of additional natural gas resources from Ubadari.
Tangguh UCC project steel-cutting ceremony; Source: Saipem
Saipemโs scope of work entails the engineering, procurement, construction and installation and commissioning of two wellhead platforms, a CO2 reinjection platform, and approximately 90 kilometers of associated pipelines, cables, and tie-in to existing brownfield facilities.
The project is operated by a consortium led by BP under a production sharing contract (PSC) with SKK Migas, Indonesiaโs upstream oil and gas regulator. The British major holds a 40.22% interest, with partners MI Berau (16.30%), CNOOC Muturi (13.90%), Nippon Oil Exploration (Berau) (12.23%), KG Berau Petroleum (8.56%), KG Wiriagar Petroleum (1.44%), and Indonesia Natural Gas Resources Muturi (7.35%).
Shortly after BP and its consortium partners reached a final investment decision (FID) for the project, Saipem and its consortium partner PT Meindo Elang Indah emerged as the preferred offshore engineering, procurement, construction, and installation (EPCI) contractor in November 2024.
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๐๐จ๐ข๐ง ๐ฎ๐ฌ ๐๐จ๐ซ ๐๐ข๐ ๐ ๐๐ซ ๐ข๐ฆ๐ฉ๐๐๐ญ ๐๐ง๐ ๐๐ฆ๐ฉ๐ฅ๐ข๐๐ฒ ๐ฒ๐จ๐ฎ๐ซ ๐ฉ๐ซ๐๐ฌ๐๐ง๐๐ ๐ข๐ง ๐ญ๐ก๐ ๐ก๐๐๐ซ๐ญ ๐จ๐ ๐ญ๐ก๐ ๐จ๐๐๐ฌ๐ก๐จ๐ซ๐ ๐๐ง๐๐ซ๐ ๐ฒ ๐๐จ๐ฆ๐ฆ๐ฎ๐ง๐ข๐ญ๐ฒ!