Swedish company lands $105 million deal for major Indonesia gas project

Swedish company Alleima has secured a $105 million contract to supply subsea tubing for Indonesia’s Kutei North Hub offshore gas project.

Swedish engineering materials company Alleima has secured an order worth approximately SEK 995 million ($105 million) to supply advanced subsea tubing for one of Indonesia’s largest upcoming offshore gas developments.

The order was awarded by an undisclosed subsea technology provider and will support the Kutei North Hub project, located about 50 kilometres off the coast of East Kalimantan in Indonesia.

The project is being developed under Searah, a joint venture between Italian energy company Eni and Malaysian state-owned energy giant Petronas. The venture combines assets across Indonesia and Malaysia to strengthen the companies’ position in Southeast Asia’s energy sector.

Kutei North Hub is expected to become one of Indonesia’s most significant offshore gas projects. The development includes 16 production wells in water depths of up to 2,000 metres and will be connected to a new floating production, storage and offloading vessel (FPSO). The facility is designed to process more than one billion cubic feet of gas per day and 90,000 barrels of condensate.

Alleima will deliver its SAF 2507 advanced umbilical tubes, which are designed to withstand extreme deepwater conditions, including high pressure and corrosive environments. The tubes form part of the subsea umbilical systems that provide hydraulic control, chemical injection and communications between offshore facilities and underwater infrastructure.

Deliveries are scheduled between 2026 and 2030, with most of the volume expected to be supplied in 2027.

“We are very pleased to have received this order,” said Carl von Schantz, President of Alleima’s Tube division.

“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 make us well positioned to support complex offshore projects like this.”

The contract highlights continued Scandinavian involvement in major energy developments across Southeast Asia, particularly in Indonesia’s growing offshore gas sector.

About Alexander Vittrup

Journalist Alexander Christian Vittrup was employed at ScandAsia Magazine and Website for one year from August 2025 until August 2026.

View all posts by Alexander Vittrup
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