Larsen & Toubro shares fell on February 19 on reports of Saudi Aramco deferring bid process for $10-billion orders for Safaniyah oilfield projects.
At 1050 hours on Monday, L&T's scrip on BSE was trading 1 per cent lower at Rs 3,352 as L&T was likely in a race to acquire major EPC order with respect to Safaniyah oilfield.
News reports are suggesting that Safaniyah expansion is being deferred due to the Saudi directive to cap production, reported CNBC-TV18 on Monday.
At least 10 EPCI deals involving the further expansion of Aramco's Safaniyah oilfield have been cancelled, said reports. EPCI is engineering, procurement, construction and installation.
L&T bagged orders worth Rs 75,990 crore at the group level during the quarter ended December 31, 2023, registering a growth of 25 per cent year on year.
International orders worth Rs 50,562 crore during the quarter comprised 67 per cent of the total order inflow, the company said.
Larsen & Toubro is a $23-billion Indian multinational engaged in engineering, procurement and construction (EPC) projects, hi-tech manufacturing and services. It operates in over 50 countries.
Saudi Arabia is considering plans for a follow-on share offering in state oil company Saudi Aramco, opens new tab to raise at least 40 billion riyals ($10 billion) as early as February, Bloomberg News reported last month, citing people familiar with the matter.
The report follows the Saudi government's order for Aramco to halt its oil expansion plan and to target a maximum sustained production capacity of 12 million barrels per day (bpd), 1 million bpd below a target announced in 2020.
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