"Oil is found in deeper sea now. The current technology does not work in exploring oil from the deep sea. There are many companies in the world conducting research on the technology and we are aligning with one of them," he said.
Larsen & Toubro may buy a company in about six months for expanding its exploration activities, Naik said without giving more details.
The company, which earns about a fifth of its revenue from overseas, is expanding its business in Gulf and Middle East because of a boom in construction and engineering activity in the region helped by record oil prices.
arsen & Toubro expects to earn at least 25 per cent of its revenues overseas. It has bagged contracts from several multinational oil companies, helping the company earn about 17 per cent of its total revenue. "We are looking to diversify more outside India to maintain the competitive edge," Naik said, adding: "The political structure and infrastructure in India will play a key role in deciding how domestic players do at the international level."
L&T is also looking to get into the manufacture of nuclear reactors for export. At present, it manufactures them for domestic use only. "We are optimistic of the export market opening up once India signs the nuclear deal."
The share of revenue from nuclear equipment is expected to jump to 7 per cent (from 3 per cent) after India signs the agreement, he said.
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The company is already in touch with perspective partners and many have assured of a long-term relationship, he said.
L&T is now restructuring the company into 12 companies and three subsidiaries, Naik, who was in Hyderabad to attend a programme at the Centre for Organisation, said.
L&T recently acquired a company in Malaysia and is creating a new engineering facility in Saudi Arabia.