L&T Chairman & Managing Director A M Naik told reporters that his company has awarded US$75 million (Rs 5,500 crore) contract to SapuraCrest Petroleum. “L&T will hold a majority stake of 60 per cent in it,” he said.
Company officials exchanged documents in the presence of Malaysian Prime Minister Najib Tun Abdul Razak.
The JV was conceptualised in 2007 to build, own and operate Derrick Lay vessel LTS 3000. Construction of the vessel, worth US$175 million, is over and it is expected to undergo trials in the last week of this month, he said.
Work on the Mumbai High North Field Project would commence in mid-November 2010, involving installation of four jackets and associated structures, which would be performed by LTS 3000 vessel and the project is expected to be completed by January 2011, he said.
Company executives later told reporters that the vessel would be highly beneficial for the joint venture, as they have a project order book size of USD 500 million.
L&T Engineering & Construction Division Head (Oil & Gas projects) V Ashwini Kumar said the vessel would commence work in Malaysian waters by March 2010, and later undertake installation of the structures in November this year. He said the vessel’s operations would allow both companies address the growing demand for oil and gas, and engineering, procurement and construction services.
Several other MOUs’ were also inked. It included an MoU between Malaysian Biotechnology Corporation and Dr Reddy’s Lab, to explore public-private partnership with Malaysia in training and development in biotechnology. The second was between Malaysian Biotechnology Corporation and ‘Biocon Limited’ of Bangalore, for “collaboration in identifying requirements to set up biopharmaceutical active ingredient within the ‘Bio-XCell Ecosystem Project.’