Sadara ... a key project for LTHE.

Sadara ... a key project for LTHE.

News in brief

July 2018

L&T unit gets top Mideast EPC contractors ranking

Indian engineering and construction major Larsen & Toubro (L&T) says one of its key subsidiaries, L&T Hydrocarbon Engineering (LTHE), has been ranked second in the Middle East’s Top 30 EPC (engineering, procurement and construction) contractors list for 2018.

With a total revenue of over $17 billion last year, L&T is one of India’s global conglomerates engaged in technology, engineering, construction, manufacturing and financial services and operating in over 30 countries worldwide. In addition to India, LTHE – the firm’s oil and gas arm – is involved in many prestigious projects in the UAE, Saudi Arabia, Kuwait, Qatar, Tanzania, Oman, and Malaysia, says L&T.

One of the key projects that led to LTHE’s ranking in the Oil and Gas Magazine Middle East’s list was the field development EPC contract with Abu Dhabi’s Al Dhafra Petroleum Operation Company, worth over $342 million, signed earlier this year. The scope of the contract includes the commissioning of flow lines and gathering facilities and pipelines to transfer crude oil and gas from the Haliba oilfield to a processing facility at Asab.

LTHE’s facility in Sohar, the first of its kind in Oman, comprises a modular fabrication yard (a joint venture of L&T and Zubair Corporation, Oman) and a heavy engineering complex.


Mitsubishi to modernise Iraqi port

Japan’s Mitsubishi Corporation (MC) has been awarded a contract by the Iraqi government to build a port in the southern region of Basra at an investment of $110 million.

Mitsubishi says the project is being implemented in partnership with multiple international contractors, including Turkey-based energy infrastructure provider Calik Enerji (CE), in which MC holds shares, and construction firm Gap Insaat, also based in Turkey. Both part of the Calik Holding group, the two sister companies will play a major role in the construction work while Mitsubishi will be responsible for overall project coordination and also serve as the prime contractor, facilitating the import of steel structures and other necessary supplies from Japan. The project is being funded through ODA (official development assistance) loans provided by the Japan International Cooperation Agency.

The objective is to modernise existing industrial port facilities around Basra by expanding the oil products berth at Khor Al Zubair Port, and also building a new service berth for working ships and service boats at Umm Qasr Port.

Mitsubishi intends to continue leveraging provisions under the Japanese government’s policy framework for promoting export of “high-quality infrastructure” by identifying opportunities that support Iraq’s efforts towards reconstruction and economic development.


Saipem secures $1.3bn offshore pipelines contract

Italy-based Saipem, a world leader in drilling services, as well as in engineering, procurement and construction (EPC), has been awarded a major offshore project contract worth $1.3 billion in the Middle East region.

The contract involves engineering, procurement, construction and installation (EPCI) activities associated with two 32-inch export pipelines, two 24-inch corrosion-resistant alloy (CRA) intrafield pipelines, risers, spool pieces and subsea structures also entailing a short onshore section and offshore brownfield topsides modifications, it states.

The award also includes the novation of substantial CRA linepipe and long-lead Items contracts.

A major player in the region, Saipem provides a full range of services with EPC and EPCI contracts (on a turnkey basis) and has distinctive capabilities and unique assets with a high technological content, it says.


ArabCo-Suez JV wins Egypt wastewater plant deal

Arab Contractors Company (ArabCo) says its joint venture with Suez, a French-based utility company, has won a €50-million ($58.3 million) deal from the Egypt government for revamping a wastewater treatment plant in Alexandria, Egypt.

The contract was awarded by the Ministry of Housing, and the project is likely to be completed by the end of 2020, says the company.  As per the deal, the Arab Contractors Company-Suez JV will help boost the efficiency of the wastewater treatment plant at Alexandria. The scope of work includes construction of four tanks with a diameter of 36 m and a height of 23 m for sludge collection besides a distribution tower, a boiler building, gas tanks, gas treatment units, a tank for bio gas sludge and receiving tank, it adds.

Arab Contractors Company says the work is likely to be completed in two phases.  

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