SNC-Lavalin Inc. (TSX:SNC) has been awarded an $87-million oil consulting contract in Colombia by the country's largest company.
The Montreal-based engineering giant's subsidiary Itansuca Proyectos de Ingenieria S.A.S. will provide management and consulting services over about two years from its offices in Bogota for Ecopetrol's oil transportation and logistics projects.
Ecopetrol is one of the world's Top 50 oil companies and engages in exploration and production activities in Brazil, Peru and the United States.
SNC-Lavalin (TSX:SNC) has nearly 1,400 employees in Colombia and is one of the largest engineering suppliers to Ecopetrol. The company currently provides Ecopetrol with management consulting services for the development of Colombia's crude oil distribution program.
Analyst Maxim Sytchev of Dundee Capital Markets said the project represents about 28 per cent of SNC's oil and gas segment's backlog as of the third quarter and one per cent of its overall order backlog.
"The recent project award shows that SNC continues its efforts to rebuild its oil and gas vertical," he wrote in a report.
In December, SNC-Lavalin was awarded an engineering services contract for Iraq's export pipeline project.