On Thursday, Share prices of engineering and construction major Larsen & Turbo rallied as much as 4%. After its hydrocarbon engineering segment received the subsea contract from country’s largest oil & gas exploration company. ONGC for largest deepwater oil & gas project, the development of block DWN-98/2 in the Krishna Godavari basin.
The integrated subsea package includes the supply of all subsea production systems (SPS), including 34 deepwater trees, and the installation of subsea umbilicals, risers and flowlines (SURF) at a water depth of between 984 feet (300 meters) and 10,500 feet (3,200 meters).
L&T said in its filing, “LTHE’s scope of work encompasses fabrication engineering, procurement and coating of around 500 km line pipes, stalk fabrication of around 300 km line pipes and fabrication, testing a load out of around 185 subsea structures including 6 subsea manifolds and onshore pipeline installation. The project will further position LTHE’s Kattupalli facility as a preferred fabrication base for future deepwater and ultra-deepwater projects on East Coast and around”.
LTHE will take advantage on its state of the art fabrication facility at Kattupalli, Chennai on the East Coast of India to fabricate the subsea production manifolds and SURF structures besides undertaking stalk fabrication of line pipes on the spool base.
L&T said the subsea award represents the largest single subsea contract awarded by ONGC. “Delivery is scheduled for 2020 for the gas system and 2021 for the oil system.”
At 09:44 hours on BSE, the stock price was quoting at Rs 1,292.30, up Rs 47.85, or 3.85 %.
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