Mumbai: Larsen and Toubro, which has a base in Oman, plans to build jack-up rigs, semi-submersibles and FPSOs (Floating Production and Storage Offloading vessels) for the offshore segment in Oman.
“We plan to build jack-up rigs, semi-submersibles and FPSOs for the offshore sector at our base in Oman,” L&T Board Member K Venkataraman told PTI.
“It plans to build two or three jack-up rigs, one or two semi-submersibles and one or two FPSOs,” he said.
The cost of a jack-up rig in the international market is estimated to be about $350 million. The cost of a semi-submersible is about $400 million. L&T plans to get a hull for a FPSO vessel from other player and would make the “top side” at its facility, which would cost about $400 million.
As a first step, L&T has bagged an order from a UK-company to refurbish a jack-up rig for $33.3 million.
There is a huge demand for refurbishment of jack-up rigs because the existing ones are at least 15 years old.
“More and more rigs are being deployed in the Gulf region because of an increase in exploration activity in the region,” he said.
From the Oman-base, L&T plans to attract players in the Gulf and Asia Pacific regions for refurbishment work. Many rig players are opting to deploy their assets in the Gulf and Asia Pacific regions because of an increase in exploration activity.
World’s largest drilling offshore contractor Transocean Inc, which has 136 rigs, has deployed 23 in the Gulf and 18 in the Asia Pacific regions.
“Refurbishing a rig would come to about $30-50 million and the company can handle upto eight in a year in Oman,” Venkataraman said.
“There is a shortage of jack-up rigs in the market. And new orders of jack-up rigs are trickling in. As the new ones come in, the older ones would be sent for refurbishment, which is what L&T is eyeing,” he added.
A jack-up rig is deployed in a shallow water where the water depth is 300 feet. A semi-submersible is a floating drill ship and deployed for water depth of more than 600 feet.
An FPSO is deployed in those areas where an oil platform cannot be built or the oil production is not large.