Oilfield services company Saipem, in consortium with PT Meindo Elang Indah, has secured an offshore engineering, procurement, construction and installation (EPCI) contract for the Tangguh CCUS compression project (UCC) in Papua Barat Province, Indonesia, operated by BP Berau.

The contract, valued at approximately $1.2bn, sees Saipem's share at around $1bn.

This contract follows bp’s final investment decision (FID) for the $7bn Tangguh Ubadari UCC project, announced last week.

The Tangguh Ubadari UCC project involves the development of the Ubadari field and along with the implementation of EGR/CCUS.

The project aims to extract natural gas from the Ubadari offshore field and transport it to an onshore liquefied natural gas (LNG) facility. Here, CO₂ will be separated and reinjected into the reservoir via an offshore platform, a process that aids in the extraction of additional natural gas resources.

Saipem's role encompasses the EPCI of two wellhead production platforms, along with a wellhead platform dedicated to CO₂ reinjection.

Saipem will also be responsible for installing approximately 90km of pipelines associated with these platforms.

The fabrication of the platforms will take place locally at Saipem’s Karimun yard, which is not only the company's largest yard globally but is also said to be one of the biggest in South East Asia.

The yard has more than 5,000 employees and spans an area of around 1.4 million square metres, inclusive of marine base and docks.

Earlier this month, Saipem, together with Technip Energies, TechnipFMC and SBM Offshore, secured contracts for the GranMorgu field development in Block 58, offshore Suriname.

The contracts were awarded by TotalEnergies and are valued at more than $3bn. Saipem is responsible for the EPCI of the subsea umbilicals, risers and flowlines package under a $1.9bn deal.