Swedish Firm Wins Major Subsea Contract for Indonesia Gas Hub

Swedish engineering materials company Alleima has secured a subsea tubing contract valued at approximately SEK 995 million ($105 million) linked to one of Indonesia’s largest offshore gas projects.

The agreement, awarded by an undisclosed subsea technology contractor, will see Alleima deliver advanced tubing products for the Kutei North Hub development located offshore East Kalimantan.

The project is being developed by Searah, a joint venture established by Italy’s Eni and Malaysia’s Petronas, bringing together energy assets across Indonesia and Malaysia.

Situated roughly 50 kilometers offshore, the deepwater gas development will include 16 production wells in water depths reaching up to 2,000 meters. Production from the field will be connected to a new FPSO designed to process more than one billion cubic feet of gas and 90,000 barrels of condensate per day.

As part of the contract, Alleima will supply its SAF 2507 advanced umbilical tubing, which is engineered to perform in challenging deepwater conditions involving high pressures and corrosive environments. The tubing will be incorporated into subsea umbilical systems responsible for hydraulic controls, chemical injection and communication links between subsea equipment and offshore facilities.

Deliveries are scheduled to take place between 2026 and 2030, with the majority of the products expected to be supplied during 2027.

“The development of large deepwater projects places very high demands on technology, materials and collaboration. Alleima’s experience in advanced corrosion-resistant alloys and reliable seamless tubing solutions makes us well-positioned to support complex offshore projects like this,” said Carl von Schantz, president of Alleima’s tube division.