L&T wins $250mn order from Qatar

Mumbai, February 19, 2007: Maersk Oil Qatar has awarded Larsen & Toubro Limited (L&T), a contract valued in the order of a quarter of billion dollars for its Block 5 development in Qatar , consisting of two new offshore platform top-sides, a flare platform and interconnecting bridge.

This is one of L&T's largest overseas project orders, and reflects the international oil company's confidence in L&T as a reliable source for single-point execution of vital energy sector projects. The order was won against stiff international competition from contractors from western countries. Maersk Oil Qatar is developing the field under a production-sharing agreement with Qatar Petroleum.

To be executed in 28 months, the Block 5 Package 14 project consists mainly of two 2300-tonne topsides with facilities for oil production and export. It will demonstrate L&T's strengths in project management, concurrent engineering, global sourcing, quality fabrication at L&T's manufacturing facility in Hazira, Gujarat, sea installation and flawless commissioning for offshore platform and pipeline projects. L&T is also building its own 3000 T Heavy Lift Pipelay Vessel, to be completed by 2008, which will further increase its value addition and capability for such projects. This particular order for Maersk will be executed by L&T in alliance with its project partners Aker Kvaerner and Seaway Heavy Lifting of the Netherlands, acting as subcontractors.

Qatar, with its abundant resources, besides Saudi Arabia and UAE, is home to many upstream oil & gas projects promoted jointly by Shell, ExxonMobil, Occidental and other oil majors. This breakthrough order from Maersk will open the gates to increase L&T's share of the burgeoning Middle East hydrocarbon projects. L&T is building a world-class fabrication facility at Sohar in Oman with deep water capability and all-weather delivery into such projects, starting with the flare platform and bridge for this project.