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Afcons bags Rs 1,750-cr ONGC contract
[ Dated - 2009 ]
[ Dated - 2009 ]
SHAPOORJI Pallonji group's AFCONS Infrastructure has bagged a contract to develop an offshore platform for state-run ONGC at Bombay High, signaling its entry into the sector. The group, which is also one of the largest shareholders in Tata Sons with its 18.4% equity, will execute the contract valued at Rs 1,750 crore through a JV with Indonesia's Gunanusa.
"The offshore platform will be completed by the first quarter of 2011 and will be our first venture in this segment," AFCONS' MD K Subrahmanian told ET. The company is also setting up an oil and gas fabrication yard at Mahuva in Gujarat.
AFCONS is currently acquiring land for the Rs 600-crore oil yard project. "The first phase of the yard will be completed by the end of the current fiscal." said Mr. Subrahmanian. Phase one of the project will have an invest¬ment of Rs 125 crore that will be funded through a combination of in¬ternal accruals and debt.
AFCONS has reported a revenue of Rs 2,250 crore and a profit of Rs 60 crore for the year ended March and is planning to intensify its focus on off¬shore businesses by tapping opportunities in West Asia and South Africa.
ONGC is slated to invest about $60 billion in the next five years which would give AFCONS an opportunity to increase its presence in the sector, said Mr. Subrahmanian.
