L&T secures up to Rs 5,000 crore ONGC order for offshore oil and gas development projects

Larsen & Toubro (L&T) on Wednesday said its energy hydrocarbon offshore business has secured a ‘large’ order from state-owned Oil and Natural Gas Corporation (ONGC) for additional development projects off India’s west coast.

The order has been awarded to L&T Energy Hydrocarbon Offshore (LTEH Offshore) for the Additional Development of Ratna-I (ADR-I) and NLM-14 projects. L&T classifies orders in the range of Rs 2,500 crore to Rs 5,000 crore as ‘large’.

The contract covers engineering, procurement, construction, installation and commissioning (EPCIC) of new offshore infrastructure, along with modifications to existing facilities. The scope includes three new well-head platforms, one riser platform, multiple sections of subsea pipelines and cables, and brownfield modifications to existing offshore installations.

The projects are aimed at supporting higher production and the continued development of ONGC’s offshore assets in the region. The combination of new infrastructure and upgrades to operational facilities will require integration of engineering and construction activities across both greenfield and brownfield sites.

“The ADR-I and NLM-14 developments are significant additions to India's offshore energy infrastructure and demonstrate the continued investment in enhancing production from established offshore assets,” said Parthasarathi Chatterjee, senior vice president and head of L&T Energy Hydrocarbon Offshore.

He added that the projects bring together new offshore facilities and modifications to existing operating fields, requiring complex engineering integration and execution. The contract will therefore involve coordination across offshore construction, subsea infrastructure and upgrades to facilities that are already in operation.

L&T expands offshore order pipeline

Following the order announcement, L&T shares were trading at Rs 3,997.25 apiece on the BSE, up Rs 37.25, or 0.94%, at around 10:10 am on Wednesday.

LTEH Offshore provides integrated EPCIC solutions for the offshore oil and gas industry. Its capabilities cover fixed offshore platforms, subsea pipelines and structures, brownfield upgrades and decommissioning projects. The business has executed offshore assignments for more than four decades.

The latest contract comes as ONGC continues to invest in its offshore assets to sustain and enhance domestic oil and gas production. India’s western offshore basin remains an important production region for the state-run explorer, with ongoing investments focused on improving output from established fields and adding supporting infrastructure.

For L&T, the order strengthens its presence in India’s offshore hydrocarbon engineering and construction segment and adds to its order pipeline in the energy sector. The contract also highlights continued spending on offshore infrastructure even as energy companies navigate changing global market conditions and the longer-term shift towards cleaner sources of energy.