14-07-2014

L&T Hydrocarbon wins $846M order for Kuwait Oil & Gas facility

L&T Hydrocarbon - the wholly-owned subsidiary of L&T dedicated to oil and gas - has achieved a major breakthrough in the Middle East by securing a contract valued at KWD 239.7 million (approx. USD 846 million) from the Kuwait Oil Company (KOC). L&T Hydrocarbon will execute a complete Engineer-Procure-Construct contract for a Gathering Centre for KOC, a subsidiary of Kuwait Petroleum Corporation (KPC) and fully owned by the State of Kuwait.

Located in north Kuwait, the oil gathering facilities will receive crude from the Raudhatain fields. The Gathering Centre is designed for a multi-stage process that will separate 100,000 BOPD of crude oil, 240,000 BWPD of water and 62.5 MMSCFD of associated gas to meet the quality requirements of downstream operations.

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 1 MMBOPD by 2015/2016.

As with all other projects being executed by the L&T Group, the Gathering Centre project will maintain high standards of health, safety and environment, engineering, procurement, project and construction management, quality and delivery.

L&T’s track record in Kuwait includes critical sections of oil refineries at Shuaiba and Mina Abdullah, an aviation fuel depot and supply of 22 reactors that were part of the country’s ‘Clean Fuel Programme’.

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.