Larsen and Toubro said on Thursday it has entered into a $100 million(about Rs 4.5 billion) joint venture agreement with Malaysia-based SapuraCrest Petroleum Berhad.
L&T would own 60 per cent in the joint venture, being formed to build, own and operate a derrick cum pipe laying barge, with the remaining stake to be owned by SapuraCrest, the company informed the stock exchanges.
The 270-person vessel would allow both the companies to meet the global demand for oil and gas engineering, procurement, installation and construction and services, it said.
The vessel would provide offshore installation services including sub-sea pipelaying, platform installations across India, West Asia, South East Asia, Australia and Sakhalin region.
"Today's partnership strengthens our ability to meet the needs of our customers in EPC projects and services for the oil and gas industry. SapuraCrest is an acknowledged regional leader in its field and our partnership strengthens both our companies while allowing our customers greater satisfaction and our shareholders greater returns," company Chairman and Managing Director A M Naik said.
Through this JV, both the companies would be able to apply for tenders in installation and EPC contracts, thus, offering a competetive advantage in India and Malaysia.
L&T has additional interests in oil and gas industry, manufacturing, services and Information Technology. Shares of the company were trading at Rs 1,889, down 4.99 per cent at the BSE.
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