Italian offshore engineering giant Saipem has once again chosen a Chinese shipyard to build the hull of a floating production storage and offloading (FPSO) unit.
It is reported that Saipem has selected China Merchants Heavy Industry (CMHI) to build the FPSO hull, which will be deployed in energy giant Eni’s Kutei North Hub natural gas project in Indonesian waters.
In October 2023, Eni announced that it would extract 5 trillion cubic feet of natural gas and 400 million barrels of condensate from the Geng North discovery area, and would extract 1.6 trillion cubic feet of natural gas from the Gehem gas field through subsea wells and pipelines.
The FPSO will serve as a central processing and export hub with a daily processing capacity of approximately 1 billion cubic feet of natural gas and 80,000 barrels of condensate and can store 1 million barrels of crude oil.
It is worth noting that this FPSO hull contract is not the first collaboration between CMHI and Saipem. Last year, Saipem awarded CMHI a contract for the hull of an FPSO for TotalEnergies’ Kaminho deepwater project in Angola’s 20/11 block.
According to reports at the time, the Kaminho deepwater project is expected to start production in 2028, equipped with an FPSO converted from a very large crude carrier (VLCC) with a crude oil processing capacity of approximately 70,000 barrels per day. The FPSO will be connected to subsea wells and pipelines and equipped with combined cycle gas turbines for power generation.
In addition to the Kaminho deepwater project, CMHI is also constructing the hull for TotalEnergies’ Gran Morgu oil and gas development project in Suriname.
The GranMorgu project is being developed jointly by TotalEnergies, Staatsolie Maatschappij Suriname N.V., and APA Corporation, with first oil expected in 2028. Two other Chinese shipyards, BOMESC Offshore Engineering and COSCO Shipping Heavy Industry, will also participate in the construction of the GranMorgu FPSO.