Indian engineering and construction giant Larsen & Toubro (L&T) has won three “large” offshore packages for its hydrocarbon business from an unnamed international client.
L&T revealed the scope of work for the new contracts “comprises engineering, procurement, construction and installation (EPCI) for various new offshore jacket structures".
While L&T did not name the international client, Upstream understands the award relates to Saudi Aramco’s offshore maintenance programme, involving its long term agreement (LTA) with EPCI players.
L&T added it has “executed orders for this client in the past and repeat business is a testimony,” to its execution philosophy.
Upstream recently reported that Aramco has dished out multiple EPCI awards worth more than a combined $1.6 billion, to three international contractors or consortia, as a part of the LTA arrangement.
The winners included— A grouping of L&T with Subsea 7, UAE’s National Petroleum Construction Company and Italy’s Saipem.
Aramco declined to comment on Upstream’s requests for comment on the potential deals, while L&T did not respond.
The L&T-Subsea 7 consortium is believed to have won deals for contract release purchase orders (CRPOs) 88, 89 and 90, sources said.
CRPO 88 involves up to 10 jackets for the Safaniyah field, while CRPO 89 comprises the EPCI of up to nine jackets for the Safaniyah and Ribyan fields.
CRPO 90 includes up to 11 offshore jackets for the Safaniyan and Zuluf fields.
Safaniyah lies about 200 kilometres north of Dhahran and, with 37 billion barrels of heavy crude in place, is viewed as the world’s largest offshore oilfield.
Aramco has been carrying out further development of the field through multiple LTA projects, as it aims to maintain the production profile and arrest decline at the field.
The majority of Aramco’s investments are diverted to capacity expansion and unconventional gas projects, but the company is expected to continue spending on lucrative LTA contracts intended to maintain output levels at some of its largest oil and gas fields.
Together, the most recent LTA awards represent the largest offshore EPCI deals awarded this year by the Saudi Arabian state-owned giant.
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