| Engineering and construction major Larsen & Tourbo (L&T) has initiated talks with two Chinese petroleum engineering companies for a strategic alliance. Sources close to the development said L&T was in talks with two Chinese majors CNOOC and Sinopack.
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| “L&T will sign a strategic alliance that may include equity participation with any of these two companies within a couple of months. The move aims at having a commendable presence in the oil exploration sector in the Chinese market,” they said.
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| However, the company kept mum on the development. An L&T spokesperson said L&T would not comment on speculation.
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| Hong Kong Stock Exchange-listed CNOOC is one of China-based oil majors and is a subsidiary of China National Offshore Oil Corporation, the country’s largest offshore oil producer. China National holds 70.64 per cent stake in CNOOC. Sinopack is a drilling company.
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| Earlier, L&T had expressed its intention to venture into deep water oil and gas exploration engineering. It has always been considering tie-ups with or acquiring oil exploration engineering companies.
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| The company, in August last year, signed a memorandum of understanding for setting up a greenfield manufacturing project in China. The proposed plant in Wuxi New District — a hi-tech industrial park in the Jiangsu province — will manufacture high-end air circuit breakers.
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| In late 2004, L&T had acquired 50 per cent stake in Valdel and formed a joint venture firm L&T Valdel Engineering to expand its products in detailed engineering for the offshore oil and gas segment.
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| In December 2005, it bagged an Oil and Natural Gas Corporation’s Rs 1,000 crore turnkey project for building four well platforms and inter-connecting pipelines for Mumbai High north and Bassein fields. |
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