Tuesday, 8 August 2017

The rise of the second rung of oil & gas EPC contractors: Is a third rung likely?

The inexorable rise of the second rung of oil and gas EPC contractors is something to take note of
The likes of Kalpataru Power Transmission Ltd, with its cut rate quotes, are quickly pushing out more established competitors out.
Just as the first rung of indigenous players such as L&T and Punj Lloyd pushed out the multinationals, companies such as Kalpataru are pushing the first rung out.
They are eating up the EPC space not just in the high cost, low-end E&P segment but also in the midstream section.
As the second rung moves up the value chain, as L&T did, will a third rung emerge?

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