Larsen & Toubro’s subsidiary L&T Hydrocarbon Engineering (LTHE) in consortium with Subsea 7 has bagged contract from Saudi Aramco pertaining to the Zuluf and Berri fields located offshore Saudi Arabia.
Under the contract, LTHE and Subsea 7 will be responsible for the engineering, procurement, construction and installation (EPCI) of three Oil Production Deck Manifolds and Subsea Pipelines in the two offshore fields.
Larsen & Toubro said that the contract marks the fifth award for the consortium and gives a significant project pipeline for LTHE and Subsea 7. Currently, four offshore contracts are being executed by the consortium for Saudi Aramco under a long-term agreement.
According to Larsen & Toubro, LTHE has three fabrication yards and the latest project will be built at its Hazira facility in Gujarat, India, which was established to “design and build” offshore oil and gas projects.
The company, in a statement, said: “Through excellent execution performance on the ongoing projects, LTHE has established a strong track record in the Middle East.
“Over the past three decades, LTHE has served the offshore oil & gas industry with consistent delivery that brings Oil Majors and National Oil Companies to place repeat orders on LTHE for challenging projects.”
The Zuluf field is located nearly 40km off the northeast coast of Saudi Arabia. In April 2018, Saudi Aramco gave a contract to Jacobs Engineering Group to provide engineering and project management services associated with the Zuluf Field Development program.
The contract is for installing onshore central processing facilities (CPFs) to process 600MBCD of Arab heavy crude oil from the offshore field. Saudi Aramco had previously given an EPCI contract to McDermott for the construction of a single well observation platform in the Zuluf field.
On the other hand, the Saudi Arabian national oil company has been undertaking the SAR22.5bn ($6bn) Berri Increment Program (BIP) at the Berri Oil Field, located on the Arabian east coast. In September 2018, China Harbour Engineering Arabia was given a construction contract for two drilling islands for the project.
Upon completion of BIP, the production from the Berri Oil Field is expected to reach 500,000 barrels per day.