L&T Hydrocarbon Bags $846M EPC Contract from Kuwait Oil Company

India's L&T Hydrocarbon - the wholly-owned subsidiary of Larsen & Tubro Ltd. (L&T) dedicated to oil and gas - disclosed Monday that it has achieved a major breakthrough in the Middle East by securing a contract valued at approxiamtely $846 million (KWD 239.7 million) from the Kuwait Oil Company (KOC). L&T Hydrocarbon will execute a complete Engineer-Procure-Construct contract for a Gathering Center 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 barrels of oil per day (bopd) of crude oil, 240,000 barrels of water per day and 62.5 million standard cubic feet per day 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 million bopd by 2015/2016.

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.

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 Program’.


Larsen & Toubro is a $14.3 billion technology, engineering, construction, manufacturing and financial services conglomerate, with global operations. Its products and systems are marketed in over 30 countries worldwide. L&T is one of the largest and most respected companies in India’s private sector. A strong, customer–focused approach and the constant quest for top-class quality have enabled L&T to attain and sustain leadership in its major lines of business over seven decades.


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