L&T joint venture to set up Oman's first mega oil rigs facility
08 Nov 2006
Mumbai: Larsen & Toubro Ltd's joint venture company in Oman, L&T Modular Fabrication Yard LLC (L&T MFY), has signed a sub-usufruct agreement (SUA) with Sohar Industrial Port Company to set up Oman's first modular fabrication facility for oilrigs.
L&T MFY is a joint venture with The Zubair Corporation - the group that is playing a critical part in Oman's growth and development.
The agreement was signed on behalf of L&T MFY by K Venkataramanan (president and member of the board of the company) and Rashad M Al Zubair of The Zubair Corporation who are chairman and joint chairman, respectively, on the board of L&T MFY, in the presence of A M Naik, chairman and managing director of L&T and Muhammad Al Zubair, chairman of The Zubair Corporation.
The new modular fabrication facility, located at Sohar in north Oman, would significantly augment the country's industrial base by manufacturing latest-generation products for the offshore oil & gas sector, including integrated decks from 10,000 to 20,000 tonnes, jack-up rigs and FPSOs (Floating Production Storage & Offloading vessels).
The company will leverage Oman's geographical position as the gateway to the Gulf to sell products in the Gulf and neighbouring areas. In addition to the GCC countries, the products will find markets in Africa and South Asia.
The yard, spread over an area of 400,000 sq.m, will have state-of-the-art facilities for heavy structural fabrication, sophisticated equipment and systems integration and testing, and load-out of ultra-large modules. The plant will be a global centre of manufacturing excellence in its field and will produce about 50,000 tonnes of finished goods per year.
L&T MFY will also lay emphasis on localisation and skill training. Training sessions are already being conducted in key aspects of modular fabrication. When fully functional, L&T MFY will employ about 2,000 personnel. It is also expected to fuel the growth of ancillary industries around the plant thus contributing to the overall industrial development of the region.
The Zubair Corporation is one of the largest industrial houses in Oman with a long history of developing associations worldwide, with a focus on development in Oman. The group comprises around 40 wholly owned companies, subsidiaries and associates that have operations in the Middle East, India, Europe and the US. The Zubair Corporation has participated in most of the infrastructure, tourism and industrial projects in the sultanate.
Through its joint ventures with The Zubair Group, L&T has been closely involved in the development of key sectors of Oman's economy. Another joint venture, Larsen & Toubro (Oman) LLC, offers turnkey construction services for all types of projects and is one of the largest construction companies in Oman today. L&T has also jointly participated with Zubair in Larsen & Toubro Electromech LLC (LTEM), formerly known as Zubair Kilpatrick LLC. It is engaged in operations and maintenance of electromechanical systems for building utilities and is also a major contractor to Petroleum Development Oman (PDO) in oilfield projects.