L&T shares fall on reports of Aramco deferring bids for Safaniyah oilfield projects
This news development impacts L&T as it was likely in the race to acquire a major EPC order with regards to the concerned oilfield.
Shares of Larsen & Toubro declined to the day's low after news reports suggested that Saudi Aramco, the world's largest oil company has deferred the bidding process for orders worth over $10 billion for the Safaniyah Oilfield projects.
The reports further indicate that at least 10 EPCI (Engineering, Procurement, Construction and Installation) deals for expansion of the company's Safaniyah Oilfield has been deferred.
This news development impacts L&T as it was likely in the race to acquire a major EPC order with regards to the concerned oilfield.
L&T had earlier told CNBC-TV18 that the company had participated in tenders with regards to the Safaniyah Oilfield.
News reports are also suggesting that Safaniyah expansion is being deferred due to the Saudi directive to cap production.
The Safaniyah Oil field currently produces 1.3 million barrels per day of oil.
CNBC-TV18 has reached out to Larsen & Toubro and is awaiting a comment on the same.
Shares of L&T are trading 1.1% lower at ₹3,351. The stock has risen 50% over the last 12 months.
(Edited by : Hormaz Fatakia)
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