Larsen & Toubro shares surge over 2% on reports of securing $4 billion Saudi Aramco contract for Jafurah Gas project

Larsen & Toubro (L&T), India's premier infrastructure company, has clinched contracts worthy implicit $4 cardinal from Saudi Aramco to grow its state projects. This important accomplishment reported meed.com, has resulted successful a 2.5 per cent emergence successful L&T's shares during greeting trading.

The $4 cardinal ( ₹35,000 crore) bid from the state-owned petroleum and earthy state elephantine Saudi Aramco encompasses the improvement of state compression systems. This is portion of Saudi Aramco's ambitious $110 cardinal Jafurah state task successful the eastbound province.

L&T's banal terms was trading successful the green, up 2.61 per cent astatine ₹3619.70, connected July 2, astatine 2:50 pm, connected the BSE.

According to the Middle East concern work meed.com, these orders are a conception of Saudi Aramco's $25 cardinal worthy of engineering, procurement, and operation (EPC) contracts announced connected June 30. These contracts people 2 of Saudi Aramco's state enlargement programs.

Although L&T has not yet released an authoritative connection regarding this development, it is reported that L&T has secured 2 cardinal packages from Saudi Aramco. Package 1, valued astatine $2.9 billion, involves the operation of a state processing works and main process units. Package 2, a $1 cardinal contract, pertains to state compression units. Both packages volition beryllium executed by L&T's Energy Hydrocarbon division.

The elaborate EPC packages for the 2nd enlargement signifier of the Jafurah task uncover further winners, including Hyundai Engineering from South Korea, which received a $2.4 cardinal order, and Spain's Tecnicas Reunidas, which received contracts totalling $3.2 billion, according to the report.

Last September, L&T had antecedently bagged 2 EPC orders worthy astir $4 cardinal from Saudi Aramco, contributing to the ongoing enlargement of the Jafurah state project. The Jafurah basin is the largest liquid-rich shale state tract successful the Middle East, with an estimated 200 trillion cubic feet of state reserves dispersed implicit 17,000 quadrate kilometres.

Additionally, the L&T Energy Hydrocarbon (LTEH) vertical of Larsen & Toubro (L&T) has secured an bid from the Oil & Natural Gas Corporation (ONGC) for the eighth signifier of Pipeline Replacement Project (PRPVIII Group B) disconnected India's westbound coast, arsenic an exchanged filing.

The bid progressive engineering, procurement, construction, installation & commissioning (EPCIC) of 129-km subsea pipelines and associated modification works crossed India’s westbound seashore offshore fields of the ONGC, arsenic per the filing.

Commenting connected the bid win, Subramanian Sarma, Whole-time Director & President – Energy, L&T, said, “This bid reflects ONGC’s continued assurance successful L&T, and this emanates from our way grounds of successfully delivering analyzable offshore projects. This bid further demonstrates L&T's unwavering committedness to India’s vigor requirement."