IL&FS Engineering Services awarded work in Middle East

May 16, 2011

IL&FS Engineering & Construction Company Limited (IL&FS Engineering Services) has been awarded a contract of approximate US$ 100mn by Prime Star Energy FZE (PSE) for construction of a Storage Tank Terminal at Fujairah, UAE.

PSE plans to undertake the development, operations and maintenance of a Storage Tank Terminal for oil and oil products at Fujairah. PSE is part of the Emirates Trading Agency LLC (ETA) group and has tied up with Infrastructure Leasing & Financial Services Limited (IL&FS) for financing and construction of the above project.

The facility shall be built at an estimated cost of US$ 165 million (AED 600 million), with an aggregate storage capacity of 600,000 cubic meters and is expected to be completed within the next 2 years. IL&FS Engineering Services is currently executing projects worth US$ 1.5 billion (AED 5.5 billion) in India across several sectors in infrastructure and the oil and gas sector. IL&FS Engineering Services was recently awarded a social infrastructure project worth US$ 100 million (AED 367 million) in Damman, Saudi Arabia.

The Storage Tank contract is an important development for IL&FS Engineering Services as it marks its first entry into the expanding Oil & Gas sector in the Middle East and will enable IL&FS Engineering Services to qualify for other works in this space.