Larsen & Toubro (L&T) an Indian Multinational operating in 30 countries, has strengthened its position in the Middle East by winning orders through its subsidiary L&T Hydrocarbon Engineering (LTHE).
L&T and Subsea 7 Consortium’s Orders
LTHE in consortium with Subsea 7 has been awarded two projects from Saudi Aramco. The order consists of engineering, procurement, construction and installation work (EPCI) for 3 Oil Production Deck Manifolds and Subsea Pipelines in Zuluf and Berri Fields of Saudi Aramco. This is the fifth order of LTHE and Subsea 7 consortium. Four offshore contracts by the consortium are already in execution stage for Saudi Aramco under long term agreement (LTA).
The current pool of LTA consist of: US companies Dynamic Industries and McDermott, India’s Larsen & Toubro (L&T) with Oslo-listed Subsea-7, UAE’s National Petroleum Construction and Italy’s Saipem
This deal is also part of LTA. The consortium shall be delivering conventional project work in shallow water offshore field*. This project will be build at L&T facility in Hazira, Gujarat, where it has 3 fabrication yards dedicated to “design and build” for offshore oil and gas projects.
As per the statement of Subsea 7, offshore execution is expected to start in 2020. Also both the work scopes shall be executed together.
About the Berri and Zuluf Fields
The Berri Field is located on the east coast north of Ras Tanura, it is partially onshore and partially offshore. The current production of the field is 250,000 – 300,000 Barrels per day (bpd).
The Zuluf Field is the northernmost offshore oilfield and fifth super-giant of Saudi Arabia. The average water depth at Zuluf is 118 feet.
About L&T: L&T with its headquaters in Mumbai, is working in the field of technology, engineering, construction, manufacturing and financial services with over USD 1,800 Cr. in revenue.
About Subsea 7: Luxembourg-registered and with headquarters in London, is a subsea engineering, construction and services company serving the offshore energy industry.
* Shallow water drilling refers to drilling (for Hydrocarbons) in the offshore shelf area, adjacent to the shoreline. As per present definition, offshore water depth of up to 400 meters is considered shallow water while anything deeper than that is deep water.