L&T forms JV with Malaysia-based SapuraCrest Petroleum

Engineering and construction major Larsen and Toubro Ltd on Friday formed a Joint Venture with Malaysia-based SapuraCrest Petroleum to install pipelines and construct offshore rigs and platforms in India, the Middle East and South East Asia.

L&T chairman and managing director AM Naik told reporters in Chennai today that his company has awarded $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 the Derrick Lay vessel LTS 3000. Construction of the vessel, worth USD 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 JV, as they have a project order book size of $500 million.