L&T group company Larsen Toubro Arabia has secured a large EPC (engineering, procurement and construction) contract from Saudi Aramco to set up gas processing facilities for the Midyan Gas Fields in Saudi Arabia.
L&T has not mentioned the value of the contract, but, according to industry observers, the order is worth $300 million.
L&T Managing Director and CEO K. Venkataramanan said: “We have been doing some pipeline projects in Saudi Arabia. It is partly due to our relationship with Saudi Aramco.”
Mega hydrocarbon
“We are now aggressively bidding for mega hydrocarbon projects, and such projects worth over $3 billion will be coming for bidding this year in Oman, Malaysia and other places. We are hopeful of bagging a few more orders this year,” he added.
Assets transfer
Last month, the L&T board had approved a proposal to transfer all assets and liabilities of its hydrocarbon business to a wholly-owned subsidiary, L&T Hydrocarbon Engineering, as this business offers promising growth potential in the international market.
Once the court approves this proposal, all hydrocarbon projects executed through joint venture partners would come under L&T Hydrocarbon.
L&T said the Saudi Arabia contract was part its strategic growth plan in the international hydrocarbon sector.
