MUMBAI: Larsen & Toubro (L&T) and SapuraCrest Petroleum Berhad of Malaysia, on Thursday announced the formation of a joint venture company to build, own and operate a derrick-cum-pipe laying barge valued at $100 million. SapuraCrest will own 40 per cent of the yet to be named joint venture company and L&T the balance 60 per cent.

The investment will be leveraged by equity and debt and the total equity component will be $32 million. L&T has facilities for upstream offshore platform manufacturing in Hazira and is scouting for one more location on the east or west coast of the country. "To L&T's existing capabilities of engineering, procurement and construction (EPC), this new company will add a vital new dimension, the power of I — Installation. This has been the missing link in our capabilities,'' said A. M. Naik, Chairman and Managing Director, L&T, while addressing the media here on Thursday.

The 270-person vessel, to be completed in the fourth quarter of 2008, will allow the company to better address the growing global demand for oil and gas EPCI and services. The 130-metre conventional vessel will provide offshore installation services, including sub-sea pipe laying, platform installation opportunities across India, the Middle East, Southeast Asia, Australia and the Sakhalin region of Russia.

K. Venkataramanan, President, Operations, L&T, said, the joint venture had identified a Netherlands-based ship builder and the vessel would be completely built in 24 months.

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