"The contract is for engineering, procurement and construction of offsite pipelines for Saudi Aramco's Yanbu Export Refinery Project (now named Red Sea Refining Company) being set up on the Western coast of Saudi Arabia along the Red sea," the company said.
The India-based company will also handle associated custody metering systems, electrical, instrumentation and control systems. The order will be executed over a period of 36 months.
Once operational, the Red Sea Refinery will process 400,000 barrels per day (bpd) of heavy crude and produce 90,000 bpd of gasoline, 263,000 bpd of ultra low sulfur diesel, 6,300 metric tons per day (MTPD) of coke and 1200 MTPD of sulfur.
"This is our first major pipeline project in the Kingdom of Saudi Arabia and will be a foundation stone for exploring more opportunities in the sector and strengthening our footprint in the market," said Dayim Punj Lloyd CEO Adnan Abduljawad.
Shares of Punj Lloyd, which is a diversified international conglomerate offering engineering, procurement and construction services in energy and infrastructure, gained Rs2.05, or 1.81 percent, to settle at Rs115.60 on Wednesday.
Separately, Punj Lloyd has initiated arbitration proceedings against state-run ONGC to recover dues of over $250 million more it had incurred to execute an offshore oil project in UK, allegedly due to a flawed design provided by ONGC, The Economic Times reported on Wednesday. The oil and gas company has rejected these charges and said design was Punj Lloyd's responsibility. It has refused to make any additional payment to the Delhi-based infrastructure firm. Punj Lloyd has been facing cost overruns and execution delays from clients in some projects over the past two years that has affected its financial performance, it added.
"ONGC has initiated action for appointment of arbitrator as per provision of the contract," a spokeswoman of ONGC was quoted as saying by the paper. Punj Lloyd chairman Atul Punj had told investors in May that the company discovered faulty design when it went into detailed engineering for the $300-million project it bagged about four years ago.
"The company informed ONGC that the project had to be redesigned which would incur additional costs and the government-run oil and gas firm had given the go ahead for redesigning the project," he said.