Alleima, a Sweden-headquartered manufacturer of high-value-added products in advanced stainless steels and special alloys as well as solutions for industrial heating, has picked up a new multimillion-dollar assignment for subsea components that will be used to bring one of Indonesia’s major upcoming energy projects to life.
Alleima has received an order for advanced umbilical tubes from an undisclosed provider of subsea technology to a total value of approximately SEK 995 million (over $104.69 million). The advanced tubing will be used to support the Kutei North Hub project, described as one of Indonesia’s major energy projects in recent years, located approximately 50 kilometers off the coast of East Kalimantan, Indonesia.
A portfolio of 19 blocks, encompassing 14 in Indonesia and five in Malaysia, is now part of Searah , the Eni–Petronas jointly controlled company , which combines the duo’s assets, technical know‑how, and financial capacity to support growth and reinforce their presence in Southeast Asia.
The North Hub entails the drilling of 16 producing wells at water depths between 1,700 and 2,000 meters, and the installation of subsea systems linked to a newly built floating production, storage, and offloading (FPSO) capable of processing over 1 bscfd of gas and 90,000 bpd of condensate, with a storage capacity of 1.4 million barrels.
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The Swedish player’s advanced umbilical tubes SAF 2507 are designed to withstand extreme seabed conditions and will be integrated into the unnamed customer’s umbilicals that enable hydraulic control functions. This order was booked in the second quarter and will be reported within the Tube division.
The deliveries are scheduled between 2026 and 2030, with the volume expected to be allocated over the years as follows: 20% in 2026, 60% in 2027, and 20% in 2030. The firm describes umbilicals as a critical component in subsea systems that must be strong enough to overcome challenges, like greater depths with higher pressures, and resist corrosion in the most demanding environments.
This equipment is made to carry hydraulic fluids and various chemicals to help the production of oil and gas, as well as communication between topsides facilities and the subsea infrastructure. SAF 2507 is perceived to be particularly well suited for high-pressure applications in deepwater environments, where long-term integrity and operational reliability are critical, thanks to its very high strength, fatigue and corrosion resistance.
Carl von Schantz , President of Tube division at Alleima, commented: “We are very pleased to have received this order. 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.”