L&T has secured an offshore infrastructure order worth between Rs 2,500 crore and Rs 5,000 crore from state-run Oil and Natural Gas Corporation for additional development projects off India’s west coast, the engineering company said on Wednesday.
The order has been awarded to L&T Energy Hydrocarbon Offshore for the Additional Development of Ratna-I, or ADR-I, and NLM-14 projects. It covers engineering, procurement, construction, installation and commissioning work for new offshore infrastructure, according to the company statement reported by Economic Times.
The scope includes three new well-head platforms, a riser platform, multiple sections of subsea pipelines and cables, as well as brownfield modifications to existing offshore installations. The work will therefore combine new construction with upgrades to facilities already operating in the offshore fields.
L&T said the projects are intended to enhance production and support the continued development of ONGC’s offshore assets in the region. The company classifies an order as “large” when its value falls between Rs 2,500 crore and Rs 5,000 crore, meaning the exact contract value was not disclosed in the announcement.
“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,” Parthasarathi Chatterjee, senior vice president and head of L&T Energy Hydrocarbon Offshore, said.
Chatterjee said the projects would require engineering integration and execution across both brownfield and new development infrastructure. The combination of new platforms, subsea connections and modifications to existing facilities makes the order an integrated offshore construction and installation assignment rather than a standalone platform project.
L&T Energy Hydrocarbon Offshore provides integrated engineering, procurement, construction, installation and commissioning services for the offshore oil and gas industry. The business has worked on fixed platforms, subsea pipelines and structures, brownfield upgrades and decommissioning assignments, the company said.
The order comes as ONGC continues to invest in developing and enhancing production from its offshore fields. The state-run producer is seeking to sustain output from existing assets while expanding infrastructure in India’s western offshore basin.
Following the announcement, L&T shares were trading at Rs 3,997.25 apiece on the Bombay Stock Exchange at around 10:10 a.m., up Rs 37.25, or 0.94%, from the previous close, according to the report. The company’s statement did not disclose the project completion schedule, individual contract values or the expected production increase from the two developments.
