Moneycontrol
Last Updated : Oct 04, 2018 10:02 AM IST | Source: Moneycontrol.com

L&T shares buck trend in falling market, up 4% as hydrocarbon segment bags order from ONGC

L&T Hydrocarbon Engineering in consortium with Baker Hughes, a GE company and McDermott International, Inc. has received subsea contract from ONGC.

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Share price of engineering and construction major Larsen & Toubro rallied as much as 4 percent in morning on Thursday after its hydrocarbon engineering segment received subsea contract from country's largest oil & gas exploration company ONGC.

L&T Hydrocarbon Engineering (LTHE) in consortium with Baker Hughes, a GE company and McDermott International, Inc. has received subsea contract from Oil & Natural Gas Corporation (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).

"LTHE's scope of work encompasses fabrication engineering, procurement and coating of around 500 kms linepipes, stalk fabrication of around 300 kms linepipes and fabrication, testing a loadout 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 ultradeep water projects on East Coast and around," L&T said in its filing.

LTHE will leverage 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 linepipes 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 IST, the stock price was quoting at Rs 1,292.30, up Rs 47.85, or 3.85 percent on the BSE.
First Published on Oct 4, 2018 10:01 am
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