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Wed 16 Jan 2019 01:58 PM

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Saudi Aramco awards contracts to L&T-led consortium

L&T Hydrocarbon Engineering will work with Subsea 7 on projects within Aramco's Zuluf and Berri fields

Saudi Aramco awards contracts to L&T-led consortium
A consortium of India's Larsen and Toubro Hydrocarbon Engineering and Subsea 7 has won an EPCI order from Saudi Aramco.

Larsen & Toubro Hydrocarbon Engineering (LTHE) and Subsea 7 have won an engineering, procurement, construction, and installation (EPCI) order from Saudi Aramco, marking the consortium’s fifth contract from the state-owned oil giant.

In a Bombay Stock Exchange (BSE) filing, the Larsen & Toubro (L&T) subsidiary said the award covers EPCI works at three oil production deck manifolds and subsea pipelines in the Zuluf and Berri fields belonging to Aramco, Construction Week reports. 

LTHE said the project will be built at L&T’s flagship facility at Hazira in Gujarat, India that, the firm added, was established specifically to “design and build” offshore oil and gas projects.

The LTHE-Subsea 7 consortium's fifth Aramco award bolsters the “significant project pipeline” of both firms, as reported in the bourse missive.

At present, four offshore contracts are under implementation by the consortium as part of Saudi Aramco’s Long-Term Agreement (LTA) programme – a scheme designed to support the state-owned oil and gas giant’s offshore projects.

The BSE filing added: “Over the past three decades, LTHE has served the offshore oil and gas industry with consistent delivery that brings oil majors and national oil companies to place repeat orders for challenging projects.”

L&T's latest offshore contract win comes weeks after its construction arm won contracts to build substations in Dubai and Saudi Arabia, with a BSE filing at the time describing the latter as a “major order” for the firm.

Activity in Aramco’s LTA programme also picked up steam as 2018 drew to a close. November saw a subsidiary of Malaysia’s Supura Energy join the scheme, followed in the same month by Dutch marine contractor Royal Boskalis Westminster.

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