Page 49 - Construction_Opportunities_August_2024

INTERNATIONAL
TICKER TAPE

OVL SECURES CONTRACT EXTENSION FOR VIETNAM OIL Despite not yet finding commercially viable reserves, OVL has
BLOCKS maintained its presence in the block due to India’s strategic interests
India’s leading overseas oil firm, ONGC Videsh Ltd (OVL), has in the South China Sea, an area marked by territorial disputes with
secured a 16-year extension for its production sharing contract China. The Vietnamese government supports OVL’s continued
(PSC) for Block 06.1 in Vietnam’s Nam Con Son Basin, allowing exploration efforts as a counterbalance to Chinese influence in the
it to continue producing oil and gas until 2039. In addition, the region. OVL first entered Vietnam in 1988 with the exploration license
Vietnamese authorities have granted a three-year extension for OVL for Block 06.1 and expanded its operations in 2006 by acquiring
to continue exploring Block 128 in the contested waters of the South exploration licenses for Blocks 127 and 128. While Block 127 was
China Sea, according to company officials. relinquished due to poor prospects, Block 128 was retained and
OVL, the overseas arm of the state-owned Oil and Natural Gas has seen multiple extensions over the years despite challenging
Corporation (ONGC), holds a 45% stake in Block 06.1, which was exploration conditions.
acquired in 1988. The block, operated by Zarubezhneft EP BV (35% The company has undertaken extensive seismic data acquisition
interest) with PetroVietnam holding the remaining 20%, produces and reprocessing as part of its exploration efforts and continues to
approximately 1 million tonnes of oil and oil equivalent gas annually. seek further data to assess the block’s potential. The ongoing work
The extension of the PSC for this block is effective from May 19, 2023. in Block 128, which lies in an area claimed by China, underscores
For Block 128, which has seen exploration efforts since 2006, the India’s strategic interest in maintaining a presence in the South
latest extension extends the exploration license until June 15, 2026. China Sea, despite past warnings from Beijing.
AXISCADES SUBSIDIARY SECURES UK CONTRACT FOR REC LTD SEEKS TO FINANCE OVERSEAS PROJECTS,
LIQUID AIR ENERGY STORAGE PROJECT APPLIES FOR SUBSIDIARY AT GIFT CITY
AXISCADES Technologies Ltd announced that its subsidiary, REC Limited, a ‘Maharatna’ company under the Ministry of Power,
Epcogen, has secured a long-term contract with Highview Power has applied to establish a subsidiary in Gujarat’s GIFT City, paving
Limited for the Carrington Power Project in Manchester, UK. This the way to finance offshore projects. Chairman and Managing
project, which will be the world’s largest liquid air energy storage Director Vivek Kumar Dewangan indicated that financing for
(LAES) facility, is designed to provide 50 MW and 300 MWh of long- these projects could begin as soon as this financial year, pending
duration energy storage capacity, capable of supplying power to approval.
over 1 million UK homes. Epcogen will be responsible for delivering The company announced its Q1 financial
multi-discipline engineering activities for the project, which is results, showing a 19% increase in revenue from
expected to begin commercial operations in 2026. The contract operations to `13,023 crore, up from `10,976 crore
builds on Epcogen’s previous involvement, extending from the front- the previous year. Net profit rose 16% to `3,442
end engineering design (FEED) phase, which commenced in mid- crore, the highest first-quarter profit recorded.
2022, to the current EPC execution stage. Dewangan expressed optimism about maintaining a 15-17% growth
Arun Krishnamurthi, CEO and MD of AXISCADES, trajectory, noting a 17% increase in the loan book to `5.30 lakh
expressed enthusiasm about the partnership, crore. The company aims to double its loan book to `10 lakh crore
stating, “We are excited to partner with Highview by 2030, with 30% coming from renewable energy projects.
Power on this transformative and pioneering REC’s market capitalization soared by 219% to `1,38,348 crore at
project. This contract represents a significant the end of the June quarter, with a share price increase of 221%
opportunity to enhance our engineering over the past 12 months. The company also reported a reduction
proficiency and strengthen our commitment to supporting in net credit-impaired assets to 0.82% and aims for zero net NPA by
innovative energy solutions that drive sustainability and efficiency. the end of the financial year.
This collaboration exemplifies Epcogen and AXISCADES’ combined REC, which attained Maharatna status in 2022, finances a wide
capabilities in delivering complex engineering solutions. We look range of power infrastructure projects and has diversified into non-
forward to contributing to the success of the Carrington Power power infrastructure sectors, including roads, metro rail, airports,
Project and future initiatives with Highview Power and more.

AUGUST 2024|CONSTRUCTION OPPORTUNITIES 49