Larsen and Toubro Enters $100 Million Joint Venture with SapuraCrest to Meet Oil and Gas Demand

Strategic Insights -

Larsen and Toubro (L&T), a leading engineering and construction company, has formed a $100 million joint venture with Malaysia-based SapuraCrest Petroleum Berhad to meet the global demand for oil and gas engineering, procurement, installation, and construction services. The joint venture, which will be owned 60% by L&T, will see the companies build, own, and operate a 270-person vessel that will provide offshore installation services across India, the Middle East, Southeast Asia, Australia, and the Sakhalin region. This partnership aims to strengthen both companies' abilities to meet customer needs in EPC projects and services for the oil and gas industry.

Key Takeaways:

  • L&T has entered into a $100 million joint venture with SapuraCrest Petroleum Berhad to meet the global demand for oil and gas engineering, procurement, installation, and construction services.
  • The joint venture, owned 60% by L&T, will see both companies build, own, and operate a 270-person vessel that will provide offshore installation services across various regions.
  • The vessel will offer services including sub-sea pipelaying and platform installations.
  • This partnership aims to strengthen both companies' abilities to meet customer needs in EPC projects and services for the oil and gas industry.
  • The joint venture will enable both companies to apply for tenders in installation and EPC contracts, providing a competitive advantage in India and Malaysia.
  • L&T has additional interests in the oil and gas industry, manufacturing, services, and Information Technology.

Statistics:

  • The joint venture has a total investment of $100 million.
  • L&T will own 60% of the joint venture, while SapuraCrest will own the remaining 40%.
  • The vessel will be a 270-persons vessel.
  • The vessel will provide offshore installation services across India, the Middle East, Southeast Asia, Australia, and the Sakhalin region.

Sources:

  • MUMBAI, June 9 Asia Pulse - Leading engineering and construction company Larsen and Toubro (L&T, BSE:500510) on Thursday said it has entered into a US$100 million joint venture (JV) agreement with Malaysia-based SapuraCrest Petroleum Berhad.