India’s L&T wins oil and gas offshore contracts worth up to USD638 million
India-based engineering and construction giant Larsen & Toubro (L&T) have announced a contract with an unnamed international client involving three “large” offshore packages for its hydrocarbon business. L&T said the scope of work for the new contracts “comprises engineering, procurement, construction, and installation (EPCI) for various new offshore jacket structures” amounting to USD638 million (RM2.81 billion).
L&T did not name the international client – however, it is speculated that the contract relates to Saudi Aramco’s offshore maintenance programme, involving its long-term agreement (LTA) with EPCI players.
Aramco has recently dished out multiple EPCI awards worth more than a combined USD1.6 billion, to three international contractors or consortia, as a part of the LTA arrangement, according to previous reporting. The contracts were awarded to a grouping of L&T with Subsea 7, UAE’s National Petroleum Construction Company and Italy’s Saipem.
The L&T-Subsea 7 consortium is believed to have won deals for contract release purchase orders (CRPOs) 88, 89 and 90: CRPO 88 involves up to 10 jackets for the Safaniyah field, while CRPO 89 comprises the EPCI of up to nine jackets for the Safaniyah and Ribyan fields; CRPO 90 includes up to 11 offshore jackets for the Safaniyan and Zuluf fields.
Safaniyah lies about 200 kilometres north of Dhahran in eastern Saudi Arabia – it is viewed as the world’s largest offshore oilfield.
Aramco has been carrying out further development on some of its largest oil and gas fields through multiple LTA projects, as it aims to maintain the production profile and arrest decline at the field. Together, the most recent LTA awards represent the largest offshore EPCI deals awarded this year by Aramco.
