Oilfields Supply Company Saudi has awarded a significant contract to Indian company Larsen & Toubro (L&T) Construction’s Buildings & Factories business to build oil and gas supply base.
L&T did not disclose the value of the order, but as per the company’s classification of contracts, a significant contract is in the range of $133m (Rs10bn) to $332m (Rs25bn).
Under the terms of the contract, the Buildings & Factories business will be responsible for designing and building one of the world’s largest oil and gas supply bases at King Salman Energy Park in Dammam, Saudi Arabia.
As part of the project, which is scheduled to be completed in 30 months, industrial facilities of different sizes will be constructed.
Additionally, the project involves construction of an administration building, ancillary buildings, associated infrastructure and storage yards along with civil, structural, MEP and architectural works.
L&T Buildings whole time director and senior executive vice-president M V Satish said: “We thank our client, for reposing confidence in our capability to build a project of such size and scale.
“Elaborating on its significance, he added “this project will act as a business incubator to support the oil and gas industry in the Kingdom and help accelerate industrial growth in the energy sector.
“It has strategic significance for L&T too, marking our future growth in such a potential-rich market like the Kingdom of Saudi Arabia.”
Oilfields Supply Company Saudi is owned by the Dubai-based Oilfields Supply Center.
L&T is engaged in engineering, procurement and construction projects, hi-tech manufacturing and services and has more than $21bn in revenue.
L&T’s Buildings & Factories business wins contract to build oil and gas supply base in Saudi Arabia. Credit: Batmaniacs.