Punj Lloyd wins its first offshore project in Middle East

Rs 314-crore project entails detail design, engineering, procurement, testing, transportation and construction/installation of a new crude transmission line

Punj Lloyd Group today announced receiving an offshore project in Al-Khafji, Saudi Arabia marking its entry into the Middle East market.

The Rs 314-crore ($57.75 million) project entails detail design, engineering, procurement, testing, transportation and construction/installation of a new crude transmission line, 40 km submarine rigid pipeline, mechanical completion, pre-commissioning, commissioning / start up, and performance testing.

“Middle East has a huge potential in the offshore space and this project marks our entry into this market. With our extensive expertise of offshore pipelines and platforms, self owned technologically advanced barges, we are committed to delivering this project to our client’s satisfaction," said PK Gupta—Director, Punj Lloyd.

The project will be commissioned in September 2014. Al-Khafji Joint Operations (KJO) is a joint operation of two national companies—Aramco Gulf Operations Company Limited (AGOC) and Kuwaiti Gulf Oil Company (KGOC), for oil and gas exploration development and production in the offshore area of the partitioned neutral zone between Saudi Arabia and Kuwait.

The scope also includes modification work at Ratawi Gathering Station, scraper launcher, tie-ins with existing facilities including utilities, valves and piping, riser and riser clamps, deck extension for installation of new facilities and onshore section at Al-Khaji from landfall to scraper receiver, scraper receiver, tie-ins with existing facilities including utilities, valves and piping.

The purpose of this project is to install a new crude transmission line as replacement for the existing transmission line. Besides ensuring safe operation, the new transmission line shall be designed for intelligent pigging for the purpose of monitoring the pipeline’s internal condition and shall be provided with suitable valving arrangement that will meet International standards and ensure safety and adequate protection of the pipeline and associated facilities while in operation.

With this contract, the order backlog for the Punj Lloyd Group on a consolidated basis has gone up to Rs 24,004 crore, reflecting the total value of unexecuted orders as on December 31, 2012 and orders received after that day.