BP Berau has awarded two engineering and construction contracts to Saipem for the $8bn Tangguh LNG expansion project in the Papua Barat Province of Indonesia.

As part of the first contract, Saipem will provide engineering, procurement, construction and installation of offshore facilities which include two unmanned platforms and subsea pipelines.

For the project, the company plans to leverage its technological expertise in the design, fabrication and installation of platform and subsea pipelines.

CSTS, a joint venture of Indonesia's engineering procurement and construction contractor Tripatra and Suluh Ardhi Engineering, Japan's Chiyoda and Saipem, was awarded the second contract.

The contract scope includes 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.

Scheduled to commence production in 2020, the expansion project involves development of two offshore platforms, 13 new production wells, a new LNG jetty, and supporting infrastructure.

BP Berau and its affiliates in Indonesia own a 37.16% stake in the project while other partners include MI Berau with 16.30% stake, CNOOC Muturi 13.90%, Nippon Oil Exploration 12.23%.

The Tangguh production sharing contract partners also include KG Berau Petroleum and KG Wiriagar Petroleum with 10%, Indonesia Natural Gas Resources Muturi 7.35%, and Talisman Wiriagar Overseas 3.06%.

Image: The Tangguh LNG facility located in Papua Barat Province of Indonesia. Photo: courtesy of MITSUI & CO., LTD.