Mukesh Ambani-controlled Reliance Industries Ltd has placed a $400 million contract with Aker Kvaerner ASA of Norway to provide a production system for development of its KG basin gas fields in Bay of Bengal.
The contract is one of the largest sub-sea projects ever awarded and includes engineering, procurement and construction of an 18-well production system for Block KG-D6 gas field, the Norwegian company said in a statement to Oslo Stock Exchange.
Aker Kvaerner, Norway's biggest manufacturer of oil rigs, would supply complete underwater production system including sub-sea trees, power cables, control system and associated connections to tie the system to an onshore gas terminal.
The delivery of the sub-sea production system, to be installed in water depths from 700 to 1700 metres, is scheduled to begin in July 2007, it said.
The contract "demonstrates our customer's confidence in our ability to deliver a fully integrated sub-sea solution and positions us for growth in the Indian sub-sea market," Raymond Carlsen, executive vice president of Aker Kvaerner's sub-sea unit said in the statement.