L&T bags Rs 1,300-cr Cairn-ONGC order

Mumbai: Larsen and Toubro Ltd has bagged two major contracts worth Rs 1,300 crore from Cairn India-ONGC joint venture for the construction of civil works and the consolidated construction works for the Northern Area Development Project located near Barmer in Rajasthan.

Cairn India and ONGC are getting ready for oil production in 2009 from one of the 15 blocks they are working on.

Mr K. Venkataramanan, President, L&T, said: “Our technology and dedicated team will be able to deliver the job, on time.” The project is expected to be completed in 18 months.

The scope of the work covers the development of infrastructure facilities, the construction of 18 well pad structures, detailed engineering and construction of all civil and electromechanical works at the Mangala and Raageshwari fields, offsite infrastructure facilities, supply, installation and commissioning of 33 KVA high voltage power line system and the telecom network.

The Mangala processing facility will cover some 400 acres in the Thar Desert in Rajasthan. The construction team will have to move approximately six million cubic metres of rock and soil to prepare the site for development. The main access road to the Mangala site has already been constructed.

Cairn Energy India Pvt Ltd has drilled more than 140 wells and has made more than 20 discoveries in Rajasthan. The Government has given its approval for the field development plans for the Mangala, Aishwarya, Saraswati and Raageshwari fields. The initial focus will be to bring Mangala on-stream at the earliest opportunity which is currently scheduled for 2009 with the other fields following.

Cairn has a resource base of 3.6 billion barrels of oil equivalent in place. The implementation of the field developmental activities will lead to a steep change in oil production levels for the company when its targeted production level of 150,000 barrel of oil per day (bopd) is reached.

Mr Rahul Dhir, CEO, Cairn India, said: “This is one of the largest onshore developments undertaken in India and one that can help provide some of the country’s energy needs for the future.”

On Monday, L&T shares on BSE closed flat at Rs 4,278.