The hydrocarbon business of Indian engineering conglomerate Larsen & Toubro (L&T) has secured a deal from ADNOC Offshore worth more than $1.8bn, according to Splash247. The project, which L&T classifies as an 'ultra-mega contract', covers the development of multiple offshore facilities in the Middle East and will be executed through a consortium arrangement with L&T serving as lead partner.
Consortium and execution scope
Splash247 reported that L&T's subsidiary LTEH Offshore will execute the major share of the project scope. The scope includes engineering, procurement, construction, installation, and commissioning of the offshore facilities, in addition to upgrading existing facilities. A significant portion of the fabrication work will be undertaken at L&T's fabrication yards.
- Engineering
- Procurement
- Construction
- Installation
- Commissioning
- Upgrading of existing facilities
Financial classification: an 'ultra-mega contract'
L&T did not state detailed financials for the contract. However, it described the deal as an 'ultra-mega contract', an internal classification for the company's largest tier of mega-projects, specifically defined as a single contract or order valued at over 15,000 crore (over $1.8bn).
S N Subrahmanyan, chairman and managing director at Larsen & Toubro, said in a statement cited by Splash247:
This prestigious award from ADNOC reflects the trust our clients place in L&T’s engineering excellence, project execution capabilities and unwavering commitment to delivering complex energy infrastructure projects safely and on schedule.
Project context: Upper Zakum and recent awards
The specific project name was not revealed by L&T. Splash247 noted that ADNOC recently awarded contracts for work on the Upper Zakum megaproject. Only a few days ago, Spanish engineering company Técnicas Reunidas won two contract packages valued at more than €5bn ($5.75bn).
| Contract | Value | Scope |
|---|---|---|
| L&T / LTEH Offshore for ADNOC Offshore | Over 15,000 crore / $1.8bn | Engineering, procurement, construction, installation, commissioning, upgrades of offshore facilities |
| Técnicas Reunidas – two packages | More than €5bn ($5.75bn) | Not detailed in the source |
Key facts from the source
- L&T's hydrocarbon business secured the ADNOC Offshore award through a consortium led by L&T.
- LTEH Offshore will handle the major share of engineering, procurement, construction, installation, commissioning and upgrades.
- The contract qualifies as an 'ultra-mega contract', valued at over 15,000 crore ($1.8bn+).
- The project name was not disclosed; ADNOC recently awarded contracts for the Upper Zakum megaproject.
- Técnicas Reunidas won two packages worth more than €5bn ($5.75bn) days before.
Implications for commodity and energy markets
For commodity traders, procurement teams and analysts tracking upstream oil and gas investment, the L&T award signals continued capital expenditure in offshore hydrocarbon infrastructure in the Gulf, according to the facts reported by Splash247. The 'ultra-mega' classification underscores the scale of the commitment. The contract includes both new facilities and upgrades to existing ones, indicating a broad operational mandate. Splash247's reference to the Upper Zakum megaproject places this award in a sequence of large EPC contracts in the region. While the source does not provide commodity price data or production figures, the deal highlights the sustained demand for engineering and subsea construction services that support offshore crude output.
Sources:
