Punj Lloyd secures pipeline order of Rs 13480 mn

Punj Lloyd Ltd has announced that the Company has secured an order from Sirte Oil Company, Libya for pipeline projects on EPC basis Valued at USD 290 million, this is the single largest ever contract bid won by the Company. Also, this is the first contract for the group in Africa and comes with a rich history of executing some very challenging projects in seemingly impossible terrains.

The order has been won amongst stiff competition from Athens-based Joannou & Paraskevaides (J&P - Overseas) alongwith Bonatti of Italy and Germany´s MAN Ferrostaal alongwith China National Petroleum Company (CNPC). The outstanding feature is that the Company has won the contract on its own standing, without collaborating with any of the majors.

The order comprises of two contracts. The first contract, valued at USD 149 million involves the construction of the main 34" dia, 98.4 km pipeline from Tripoli to Melita and a 24" dia, 21 km branch pipeline to the Zawia power plant The work involves the construction of gas pressure reducing & metering stations and a compressor station at Melita. The work is scheduled to be completed in 22 months.

The second contract, valued at USD 141 million, involves completion of the 34" dia, 157 km El Khoms-Tripoii pipeline, extensive civil, mechanical, electrical and instrumentation work on the gas pressure reducing, metering & SV stations, compressor stations at Sidra & Wachkah, telecommunication & SCADA works. This is scheduled to be completed in 18 months.

Pipelines continue to remain the Company´s core competence and its expertise in onshore and offshore pipeline is well known the Company has won kudos for executing some prestigious projects like 509 km Dahej Bijapur pipeline, 264 km x 48" dia gas export pipeline in Oman, section of the Pipeline of the Century - Baku-Tbilisi-Ceyhan crude oil pipeline etc.

This largest ever single order win is close on the heels of another sizable order win of Rs 8230 million contract from Rajasthan Vidyut Utapadan Nigam Ltd, Jaipur for building up 2x250 MW power plant on EPC basis.

With this win, the order backlog for Punj Lloyd group (including Sembawang Engineers & Constructors, Singapore) is Rs 1,19,090 million. This is the total value of unexecuted orders as on July 01, 2006 and new orders received till date The group is now the second largest engineering and construction major in the country in terms of the order book. Over 61% of the Company´s order backlog is now represented by projects based outside India.

On getting the Libyan order, Mr. Atul Punj, Chairman of the Company said "this is an important milestone for Punj Lloyd and will help us to set a strong foothold in Maghreb and Africa".

Source : Equity Bulls

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