L&T wins $250 million offshore contract in Qatar

Mumbai: Larsen & Toubro Ltd (L&T) has received a $250 million contract from Maersk Oil Qatar for development of its Block 5 field in the oil-rich Gulf state.

The contract for construction of two new offshore platform top-sides, a flare platform and interconnecting bridge, is one of the company''s largest overseas project orders, L&T said in a filing with the Bombay Stock Exchange (BSE).

The project also reflects the confidence international oil companies have in L&T as a reliable source for single-point execution of vital energy sector projects, the company said, adding that 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 of 14 projects consists mainly of two 2,300-tonne topsides with facilities for oil production and export.

L&T''s strengths lie in project management, concurrent engineering, global sourcing, quality fabrication at the company''s manufacturing facility in Hazira, Gujarat, sea installation and flawless commissioning for offshore platform and pipeline projects.

L&T is also building its own 3,000 tonne heavy lift pipelay vessel. To be completed by 2008, the vessel will further increase L&T''s value addition and capability for such projects.

L&T plans to execute the Maersk order in alliance with its project partners Aker Kvaerner and Seaway Heavy Lifting of the Netherlands, acting as subcontractors.

L&T, meanwhile, 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.

The Gulf states like Qatar, Saudi Arabia and UAE, have many upstream oil and gas projects promoted jointly by Shell, ExxonMobil Occidental and other oil majors. This breakthrough order from Maersk is expected to open the gates for an increased share for the company in the burgeoning Middle East hydrocarbon projects, L&T said in the filing.