Indian engineering conglomerate Larsen & Toubro (L&T) has been awarded a significant design and build contract by Oilfields Supply Centre (OSC) for one of the world's largest oil and gas supply bases in Dammam, Saudi Arabia.
Mumbai-based L&T said in a stock exchange statement that the project, located in King Salman Energy Park (SPARK), was awarded to the Buildings and Factories business of Larsen & Toubro Construction.
In early April, L&T had announced contract wins in Saudi Arabia to build the 1.5-gigawatt Sudair Solar Photovoltaic (PV) Project, and the 300-megawatt Jeddah Solar PV Power project.
Owned by the government of Dubai, OSC focuses on development and operation of oilfield logistics bases for the upstream oil and gas industry in the Middle East and North Africa (MENA) region.
The L&T statement didn’t disclose the contract value but said it is a ‘significant’ contract in the range of 1,000 ($133 million) to 2,500 Indian Rupee crores ($333 million), according to the company’s internal categorisation.
Energy sector focus
The statement said the project would be completed in 30 months, and includes construction of industrial facilities of different sizes, an administration building, ancillary buildings, associated infrastructure, and storage yards along with Civil, Structural, MEP and architectural works.
L&T’s Whole Time Director & Senior Executive Vice President Buildings M V Satish said the project will act as a business incubator to support the oil and gas industry in the kingdom and help accelerate industrial growth in the energy sector.
On Monday, SPARK had announced that OSC had awarded a contract for construction of their supply base in the Park with a total investment of $570 million. The press statement said the OSC base would be spread over an area of one million square metres and provide pre-built industrial solutions to investors and partners of all sizes with the flexibility to rent industrial facilities and workshops on demand.
The statement said all phases of work would be completed by the fourth quarter of 2023, and would focus on sustainability and environmental-friendly design and construction, in line SPARK’s status as the first industrial city in the world to obtain LEED Silver Certification
(1 US Dollar = 75.13 Indian Rupees)
(Reporting by Anoop Menon; Editing by Seban Scaria)
Disclaimer: This article is provided for informational purposes only. The content does not provide tax, legal or investment advice or opinion regarding the suitability, value or profitability of any particular security, portfolio or investment strategy. Read our full disclaimer policy here.
© ZAWYA 2021