Punj Lloyd gains 6% on maiden Saudi Arabia order

Shares of Punj Lloyd , an engineering, procurement and construction (EPC) conglomerate, rallied as much as 5.7 percent on Friday after receiving the first offshore project in Saudi Arabia.

The project, worth Rs 314 crore (USD 57.75 million), is scheduled for commissioning in September, 2014, the company said in its release.

"Middle East has a huge potential in the offshore space and this project marks our entry into this huge market," PK Gupta, Director of Punj Lloyd said.

"The purpose of this project is to install a new crude transmission line as replacement for the existing transmission line," the company said.

Al-Khafji Joint Operations (KJO) is a joint operation of two national companies - Aramco Gulf Operations Company Limited (AGOC) and Kuwaiti Gulf Oil Company (KGOC), for oil and gas exploration development and production in the offshore area of the partitioned neutral zone between Saudi Arabia and Kuwait.

With this contract, the consolidated order backlog of the group stands at Rs 24,004 crore.
 
Shares went up 4.14 percent to Rs 49.10 on Bombay Stock Exchange at 10.07 am.