Chennai: Engineering and construction company Larsen and Toubro (L&T) Ltd on Friday formed a joint venture with Malaysia-based SapuraCrest Petroleum to undertake installation of pipelines and construction of offshore rigs and platforms in India, the middle east and south east Asia.
L&T chairman and managing director MV Naik told reporters here that his company has awarded $75 million (Rs5,500 crore) contract to SapuraCrest Petroleum. “L&T will hold a majority stake of 60% in it,” he said.
Company officials exchanged documents in the presence of Malyasian Prime Minister Najib Tun Abdul Razak.
The JV was conceptualized in 2007 to build, own and operate the derrick lay vessel LTS 3000. Construction of the $175 million vessel was already over and it is expected to undergo trials in the last week of this month, he said.
Work on the Mumbai High North Field Project would commence by mid-November 2010, involving installation of four jackets and associated structures. The work would be performed by LTS 3000 vessel and the project was expected to be completed by January 2011, he said.
Company executives later told reporters that the vessel would be highly beneficial for the JV, as they have a project order book size of $500 million.
An official of L&T Engineering and Construction division said the vessel would commence work in Malaysian waters by March 2010 and later undertake installation of the structures in November 2010.
He said commencement of the vessel’s operations would allow both companies to address the growing demand for oil and gas engineering, procurement and construction services.