L&T Hydrocarbon Engineering, a unit of Larsen & Toubro, said it has signed a long-term agreement with McDermott International to explore joint execution of subsea projects in deepwater segment emerging on the east coast of India.
Under the agreement, LTHE and McDermott will develop a cost-effective approach which will utilize LTHE’s state-of-the-art, strategically located Kattupalli facility near Chennai.
It will be used for fabrication and setting up of a local spoolbase in India.
A spoolbase is a shore-based facility used to facilitate continuous pipe laying for offshore oil and gas production. It allows the welding of single or double joints of steel pipe for spooling onto a reel lay vessel.
India’s offshore oil blocks off the east coast are expected to hold huge reserves of oil and gas. However, the high cost of extraction has deterred companies from tapping the area so far.
“The versatile fleet and combination of reel lay and S lay methods for laying of subsea pipelines will be by McDermott. This offers a unique and compelling value proposition for future east coast India deepwater developments,” L&T said.
LTHE and McDermott have successfully cooperated on several other projects in India previously and this agreement further strengthens the relationship between the two companies.
The agreement builds on successful collaboration between McDermott and L&T which resulted in the recent Rs. 2450 Crore order to the Consortium of McDermott and LTHE for Vashishta Deepwater Greenfield development.
L&T has been serving the upstream hydrocarbon sector since the early ’90s.
The Company’s offshore track record includes successful completion of several challenging projects for domestic and international clients.
LTHE provides complete ‘EPCI’ solutions for the offshore oil & gas industry combining customized engineering, procurement, fast-track project management and world-class fabrication & installation capabilities.