 "L&T wins Rs 5,000 crore Kuwait order")
L&T Hydrocarbon has won Rs 5076 crore contract from Kuwait Oil Company (KOC) for setting up facilities to separate gas and water from crude oil. The scope of L&T's contract includes project management, detailed engineering, procurement, supply, construction, testing, mechanical completion, pre-commissioning, commissioning assistance including performance testing
The new facilities will support KOC's long term strategy for the development of the North Kuwait fields to increase oil production to one million tonnes by 2016. "The contract was won by L&T against stiff competition from European and Korean EPC majors. It represents a significant step forward in L&T's strategic growth plan in the international hydrocarbon sector,'' company announced in a statement today.
Last year L&T carved out a separate subsidiary for hydrocarbon business and aimed to grow business in Gulf region to cover up for lack of orders in India. The company aims to increase the subsidiary's sales to $5 billion over the next five years from $2 billion now and subsequently list the subsidiary to enhance shareholders' value. Hydrocarbon business accounts for about 10 percent of company's total order book.