December 02, 2008

L&T to boost deep sea drilling business

BS reported that Larsen & Toubro is planning to acquire a research company to expand its technological skills in deep sea drilling.

Mr AM Naik chairman of L&T said that "Oil is found in deeper sea now. The current technology does not work in exploring oil from the deep sea. There are many companies in the world conducting research on the technology and we are aligning with one of them." He added that it may buy a company in about 6 months for expanding its exploration activities.

Larsen & Toubro expects to earn at least 25% of its revenues overseas. It has bagged contracts from several multinational oil companies, helping the company earn about 17% of its total revenue. It is also looking to get into the manufacture of nuclear reactors for export. At present, it manufactures them for domestic use only.

L&T is now restructuring the company into 12 companies and three subsidiaries. It recently acquired a company in Malaysia and is creating a new engineering facility in Saudi Arabia.