L&T bags power transmission contract in Saudi Arabia; shares up

Infrastructure major Larsen & Toubro (L&T) has secured an engineering, procurement and construction (EPC) order from a Saudi Arabian Oil Company - Saudi Aramco.

 

"Power Transmission and Distribution Business of L&T Construction, through its fully owned subsidiary L&T Saudi Arabia LLC, has bagged a major international EPC order in Saudi Arabia from Saudi Aramco," L&T said in a statement on Tuesday.

 

The statement, however, did not provide financial details of the order.

 

Larsen & Toubro Saudi Arabia LLC is one of the multiple joint ventures of L&T in Saudi Arabia.

 

"This order has been secured for the construction of 55 km of Double Circuit Overhead Transmission line and Underground Cabling," it said.

 

The purpose of this project is to replace the existing electrical power supply system at the Abu Ali Plants and overcome existing deficiencies to meet future energy demand of Berri oil field, the statement added.

 

The scope involves detailed design, engineering, site investigation, survey, material procurement, transportation, installation, training, mechanical completion etc.

 

The project will be completed in 26 months, it added.

 

"With significant growth potential in oil production in Saudi Arabia, the winning of this order not only comes at a most opportune time but is also strategic from the point of view of L&T's capability to execute such projects in an extremely competitive environment," said L&T's member of board and senior executive vice president, S N Subrahmanyan. 

 

As on 2:18 p.m., shares in L&T were trading at Rs 1023.00 apiece on the BSE, up 1.16 per cent from the previous close.