Indian firm Oil and Natural Gas Corporation (ONGC) has awarded an MYR3bn ($721.82m) engineering, procurement, construction, installation and commissioning (EPCIC) contract to a consortium of Sapura Energy and Afcons Infrastructure.

Under the terms of the contract, Sapura Energy subsidiary Sapura Fabrication and Afcons will jointly carry out EPCIC works for a central processing platform (CPP) and living quarters for block KG-DWN 98/2, located offshore the Godavari Delta on the east coast of India at water depths ranging between 300m and 3,200m.

Block KG-DWN 98/2 covers an area of around 7,295km of the Krishna-Godavari basin and the project involves the completion of 34 subsea wells, as well as the laying of 425km of pipeline and 150km of control umbilical.

“The project is an opportunity for Sapura Energy to participate in a key development for ONGC.”

ONGC expects to invest a capital expenditure of $5.07bn in the project and expects to achieve plateau output of 78,000 barrels per day of oil and 15mmscmd of gas.

The company is targeting production of first gas from this project by the end of next year and oil by 2020.

Sapura Fabrication holds a 48.3% share in the consortium and is entitled to receive around MYR1.47bn ($353.69m) as its share of the aggregate contract value.

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Sapura Energy stated: “The new contract win enhances the company’s presence in the growing market and Sapura Energy is pleased to continue its contribution to India’s oil and gas industry and in helping to meet the country’s increasing energy demand.

“The project is an opportunity for Sapura Energy to participate in a key development for ONGC, leveraging on the company’s established deepwater knowledge and capabilities.”

Afcons is the construction division of Indian engineering and construction conglomerate Shapoorji Pallonji Group.

The latest contract comes after Sapura won contracts worth MYR1.75bn ($421.06m) in Mexico and Malaysia last month, including a contract from ENI Mexico at the Offshore Block Area 1 in the Gulf of Mexico.

For the third quarter ended 31 October, the company reported a profit-before-tax of MYR40.3m ($9.69m).