Larsen & Toubro‘s energy hydrocarbon offshore arm has won a large order from Oil and Natural Gas Corporation for offshore work off India’s west coast, the engineering major said in a stock exchange filing on Tuesday.
The order, classified as “large” under L&T’s own project value scale, covers the Additional Development of Ratna-I and the NLM-14 project. Under the company’s classification, a large order falls between Rs 2,500 crore and Rs 5,000 crore. The exact value was not disclosed.
L&T-ONGC offshore project: What the order covers
The contract covers engineering, procurement, construction, installation and commissioning work, an approach the industry refers to as EPCIC.
L&T said the scope includes three new well-head platforms and one riser platform. The work also involves laying multiple segments of subsea pipelines and cables. Brownfield modifications to ONGC’s existing offshore installations are part of the package as well.
The company said the project is meant to boost production from ONGC’s established offshore assets in the region.
“The ADR-I and NLM-14 developments are significant additions to India’s offshore energy infrastructure and demonstrate the continued investment in enhancing production from established offshore assets. These projects combine new offshore facilities with brownfield modifications in existing operating fields, calling for careful planning, engineering integration and precise execution. Drawing on our extensive offshore EPCIC experience, we look forward to delivering these developments safely and efficiently, while supporting ONGC’s long-term production objectives”. Parthasarathi Chatterjee, senior vice president and head of L&T Energy Hydrocarbon Offshore, said.
L&T Energy Hydrocarbon Offshore track record
L&T said its offshore unit has worked in the sector for close to four decades, with projects spanning fixed platforms, subsea pipelines and structures, brownfield upgrades and decommissioning assignments. The division has also built a fleet of marine vessels and in-house engineering and fabrication capacity, which it has used on shallow-water and deep-water projects in overseas markets as well as in India.
About L&T
Larsen & Toubro is an Indian multinational with interests spanning engineering and construction, hi-tech manufacturing, information technology and financial services, and it counts itself among the largest companies of its kind headquartered in the country.
Founded in Mumbai in 1938 by Danish engineers Henning Holck-Larsen and Søren Kristian Toubro, the company now operates in more than 50 countries and has a manufacturing footprint that extends across eight countries besides India.
According to the company, its business is built on a customer-focused approach and a long-standing emphasis on quality, which it credits for helping it hold leadership positions in its major lines of business for more than eight decades. L&T is currently led by S N Subrahmanyan as chairman and managing director.
Larsen & Toubro’s share price
Larsen & Toubro’s share price has been up 0.27% as of intraday on September 9. The company’s share price has been down 2.4% in the past month. However, Larsen & Toubro’s share price has been up 12.77% in the past year.