Mumbai: A consortium of shipmaker Pipavav Defence and Offshore Engineering Co. Ltd and Larsen and Toubro Ltd (L&T), India’s largest engineering firm, will convert an offshore production unit called Sagar Pragati into a ship for Oil and Natural Gas Corp. Ltd (ONGC) for $170 million.

“The contract includes survey, design, engineering, procurement, fabrication, transportation, jack-up, hook-up, testing, certification, inspections, pre-commissioning, start-up and commissioning of entire facilities including demolition for the conversion of Sagar Pragati, a mobile offshore production unit," Pipavav Defence said in a filing to BSE on Thursday.

Pipavav Defence said it now has orders worth more than 12,000 crore.

The group is trying to leverage the shipmaking facilities of Pipavav Defence and engineering capabilities of Larsen and Toubro, a Pipavav Defence executive said, requesting anonymity.

“At this moment, this is just a consortium to scout for orders, but we are contemplating a joint venture company in future," he said.

Larsen and Toubro declined to comment.

Last month, the government had cleared Pipavav Defence’s proposed joint venture with state-run Mazagon Dock Ltd to build warships for the Indian Navy.

In September 2011, the defence ministry had put on hold the planned joint venture after rival companies said the selection of Pipavav Defence lacked transparency.

Pipavav Defence was planning to raise $150 million through a listing on the London Stock Exchange by October, Mint reported on 31 July.

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