L&T Hydrocarbon Engineering (LTHE), a fully-owned subsidiary of Larsen & Toubro, in consortium with EMAS CHIYODA Subsea (ECS), a 50:50 joint venture company owned by Ezra Holdings and Chiyoda Corporation, has been awarded a contract by Saudi Aramco for the development of an offshore gas field in Saudi Arabia, worth over $1.6 billion.
In a statement issued on Thursday, L&T said the share of LTHE in the contract is 60%, or about $960 million. Shares of L&T were trading down 0.7% at Rs 1,560 on the Bombay Stock Exchange (BSE), with the broader index also down 0.4%.
The contract is for the development of the second phase of the Hasbah Offshore gas field off the coast of Saudi Arabia, and is the first major contract from Saudi Aramco after the finalisation of the long-term agreement executed by Saudi Aramco with the LTHE – ECS consortium in June last year.
“We are dedicated to providing EPCI (engineering, procurement, construction and installation) services in this region with our state-of-the art facilities and strong team delivering excellence in execution. We look forward to more accomplishments with our consortium partner EMAS CHIYODA Subsea under the long-term agreement, which is for six years extendable by another six years,” said L&T Hydrocarbon MD Subramanian Sarma.
The consortium will carry out complete EPCI work of the offshore plant, which includes well-head platforms and 25 km of in-field pipelines. Other works include interconnections of trunk lines to transport produced gas, from offshore to the Fadhili Gas Plant, complete with 110-km of fiber optic and power cables for power and communication network with the onshore facilities.
The project is scheduled to be completed over a period of three-and-a-half years and will serve Saudi Aramco’s strategy to supply additional 2,500 million standard cubic feet of gas per day (MMSCFD) of clean natural gas through the Fadhili Gas Plant to meet Saudi Arabia’s growing energy demand.