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Larsen & Toubro wins Aramco offshore contracts

21 March 2023

Saudi Aramco has awarded India’s Larsen & Toubro Energy Hydrocarbon (LTEH) three offshore engineering, procurement, construction and installation (EPCI) contracts, according to sources.

LTEH has won Aramco Contracts Release & Purchase Order (CRPO) numbers 98, 120 and 121, which cover EPCI work on Saudi Arabia’s Zuluf, Hasbah and Manifa offshore oil and gas fields.

The combined value of the three CRPOs is estimated to be $1bn, sources said.

LTEH leads a consortium that also includes UK-based Subsea7, which is a member of Aramco’s Long-Term Agreement (LTA) pool of offshore services providers. The LTEH/Subsea7 consortium was officially awarded the contracts “around mid-March”, the sources added.

Mumbai-headquartered LTEH issued a press release on 21 March saying it has “secured multiple offshore packages from a prestigious overseas client”. It has not yet named the customer or provided any details of the contracts secured.

The scope of work on the tenders comprises EPCI "of offshore structures and upgradation of existing facilities”, LTEH added.

MEED reported in January on the frontrunners for 11 Aramco offshore CRPOs, including naming LTEH/Subsea7 as favourites to win at least two of the three tenders in question.

The detailed scope of work on CRPOs 98, 120 and 121 are as follows:

CRPO 98 – upgrade of AM crude platforms at Zuluf tie-in platform 7:

  • Upgrade of five production deck modules (PDM)
  • Upgrades of four Zuluf tie-ins
  • Demolition works
  • Installation of slipover jackets
  • Laying of associated subsea pipelines and cables

CRPO 120 – installation of structures at Hasbah:

  • One PDM and pipeline at Hasbah field development

CRPO 121 – installation of structures at Manifa:

  • Twelve jackets at Manifa
ALSO READ: Aramco's bumper profits will fuel record spending

The majority of the kingdom’s oil and gas production comes from its offshore hydrocarbons resources, contained in fields including Abu Safah, Arabiyah, Hasbah, Berri, Karan, Manifa, Marjan, Ribyan, Safaniya and Zuluf.

It is crucial for Aramco to maintain and gradually increase productivity at these fields, some of which are mature.

To that end, the state enterprise is poised to award more than $3bn of offshore EPCI deals to entities in its LTA pool of offshore contractors within weeks. The award of $1bn-worth of work to LTEH/Subsea7 is part of the expected offshore project spending by Aramco.

MEED's April 2023 special report on Saudi Arabia includes:

> CONSTRUCTION: Saudi construction project ramp-up accelerates

> UPSTREAM: Aramco slated to escalate upstream spending

> DOWNSTREAM: Petchems ambitions define Saudi downstream

> POWER: Saudi Arabia reinvigorates power sector

> WATER: Saudi water begins next growth phase

> BANKING: Saudi banks bid to keep ahead of the pack

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Indrajit Sen

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