Oil & Natural Gas Corporation (ONGC) has awarded a Rs877-crore turnkey project order with Larsen & Toubro Ltd (L&T) for the NQ re-construction (NQRC) Project in Mumbai High North fields.

In recent years L&T has emerged a serious contender for offshore oil sector fabrication projects in India and Oman.

This projects is the largest ''brownfield'' project of its kind awarded in the offshore oil and gas sector in India. The NQ Complex, one of the oldest assets owned by ONGC, has been operational since 1985.

The project comprises reconstruction of offshore facilities at the NQ Complex including the replacement of the existing booster compressor with a new process gas compressor module, revamp of produced water conditioning system, hot oil system, gas dehydration unit and other utilities.

Kawasaki Heavy Industries (KHI), Japan, will supply the turbo-machinery for the process gas compressor module, which will will be fabricated and delivered from L&T''s modular fabrication facility at Hazira. The project calls for substantial quantum of offshore works, with an "in-the-sea" campaign spanning over 300 days in Mumbai High.

ONGC selected L&T on the strength of its earlier track record in meeting several stringent requirements, including a tight project schedule. The project will be executed on a lump sum Turnkey basis with the completion scheduled by 8 May, 2009.

The award of the NQRC project has further strengthened L&T''s position in the rapidly expanding upstream hydrocarbon sector in India.