Wednesday, December 22 2004 16:58 Hrs (IST) - World Time -

Bangalore: Larsen and Toubro Limited has entered into an agreement to acquire a 50 per cent stake in the carved out upstream engineering business related to oil and gas production and exploration of Bangalore-based Valdel Engineers and Constructors Private Limited.

The upstream engineering business will be named as "L&T Valdel Engineering Pvt Ltd". The new JV will explore and expand prospects in the detailed engineering for the upstream oil and gas segment and look for new opportunities, according to a Valdel release.

No financial details were disclosed.

K Venkataramanan, member of the board and president (Operations), L&T said, "We are keen to grow in the engineering space and offer design and engineering services for the Oil and Gas industry. This acquisition would help us in that direction. In addition to building capacities for our upstream oil and gas business, L&T encourages its JVs to be independent and pursue direct customer work actively."

Valdel has grown from providing specialised design and engineering services for hydrocorbon and chemicals industries to providing comprehensive integrated services across diverse industries through a multi-disciplinary approach, it said.

M J Shantharam, managing director, Valdel Corporation, the holding company of Valdel Engineers & Constructors Pvt Ltd, said, "L&T has been one of our key customers and this transition into a partnership gives us complete synergy to strengthen our position in the upstream engineering services sector, in domestic and international markets".