L&T surges following news of a potential Rs 24,000 crore deal from Saudi Aramco

7 Sep 2023 , 12:47 PM

Following news that Saudi Aramco’s Jafurah unconventional onshore gas development project was set to award the Indian infrastructure player an order worth $2.9 billion (about Rs 24,000 crore), Larsen & Toubro’s shares started slightly higher on September 7.

A $110 billion Jafurah gas project is being proposed by Saudi Aramco in the province’s east. L&T is the chosen contractor for a $2.9 billion contract, according to a CNBC-TV18 report.

The company categorizes orders between Rs 1,000 and Rs 2,500 crore as ‘significant orders,’ and orders between Rs 2,500 and Rs 5,000 crore as ‘large orders.’

According to the article, L&T will build the project’s major process units and a gas processing plant. However, the corporation has not yet responded to CNBC-TV18’s inquiries.

Shares of L&T were up 0.5% at Rs 2,743 at 9:19 a.m. on the National Stock Exchange.

In addition, L&T has submitted bids for a second set of orders totaling $10 billion for the Safaniyah Gas Field of Saudi Aramco.

A significant order for the fabrication and supply of process and piperack modules for a 2.3 MMTPA urea plant for Perdaman Chemicals and Fertilizers was also received in August by the construction giant from the Australian company Saipem & Clough JV.

In the preceding month, Larsen & Toubro’s power, transmission, and distribution vertical also received fresh orders in the Middle East.

L&T’s orderbook was worth Rs 399,526 crore at the end of FY23, an increase of almost 12% from the previous year.

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