Leighton wins $720m pipeline contract
Dubai, March 25, 2008
Leighton International has won a $720 million contract for the construction of offshore pipelines in India for Oil and Natural Gas Corporation (ONGC).
The project, PRP - 2 (Pipeline Replacement Project - 2), involves engineering, procurement and installation of over 200 km of fixed and flexible pipelines of various diameters in the Mumbai High field some 80 km off the coast of Mumbai.
Offshore works on the project will commence in November this year and will take place during the period of suitable weather from November to May each year for the next three years. Stage one will be completed in May 2009, stage two in 2010, and stage three in 2011.
Managing director of Leighton International, David Savage, said the new project underlined Leighton’s oil and gas credentials and further consolidated the company’s operations in India.
“Our capabilities in oil and gas have been strengthened over the years and this project for ONGC is testament to this.
“This is the second Pipeline Replacement Project being launched by ONGC with more expected in the coming years. This is indicative of the type and scale of oil and gas opportunities available to the company within the region,” he said.
“The project pushes our work in hand to a record $3.2 billion. We expect to be able to further increase this figure over the next few months, with the conversion of a number of good prospects in the Arabian Gulf.
“India continues to be a key market for Leighton International and we see further opportunities in oil and gas. We also have strong prospects in transport infrastructure – particularly roads and rail, residential, industrial and commercial building, and contract mining,” he said.
Leighton’s oil and gas division in India has grown considerably over the past year following the completion of two oil pipeline projects in India for Reliance Industries and Kochi Refineries. The company has its own marine fleet which includes the pipelay barge, 'Stealth', and crane barge, 'Mynx'.
ONGC is Asia’s largest oil and gas exploration and production company and ranks 21st among the world’s top 50 publicly traded companies in the oil and gas industry. The company holds the largest share of hydrocarbon acreages in India and contributes over 78 per cent of Indian’s oil and gas production. - TradeArabia News Service