Larsen & Toubro's Energy Hydrocarbon division secured a 'Major' order from Kuwait Oil Company for Jurassic Light Oil export facilities. The contract value is between ₹5,000 to ₹10,000 crore.
Larsen & Toubro Secures Major Kuwait Oil Contract Worth Up To ₹10,000 Crore
Larsen & Toubro's Energy Hydrocarbon Onshore business has bagged a significant contract valued between ₹5,000 crore and ₹10,000 crore. This contract is classified as 'Major' by the company. ## What just happened Larsen & Toubro (L&T) announced it has received a 'Major' order from the Kuwait Oil Company (KOC) for the Jurassic Light Oil (JLO) Export Facilities project. ## Why this matters This substantial contract boosts L&T's order book and strengthens its position in the Middle East's energy sector, showcasing its capability in executing complex international projects. ## The backstory L&T's Energy Hydrocarbon segment has a track record of winning large international contracts in the oil and gas sector, including refinery expansions and petrochemical projects. ## What changes now The project involves Engineering, Procurement, and Construction (EPC) services for new crude oil storage tanks and upgrades to existing export networks. L&T will deliver the project on a Lump Sum Turnkey (LSTK) basis. ## Risks to watch Executing large-scale international EPC projects involves inherent risks related to project timelines, cost overruns, and geopolitical factors in the region. ## Peer comparison L&T competes with other global EPC players like Technip Energies, Saipem, and Hyundai Engineering & Construction in securing such large hydrocarbon projects. ## Context metrics (time-bound) The implied value of this contract ranges from ₹5,000 crore to ₹10,000 crore. ## What to track next Investors should monitor the project's execution progress and its contribution to L&T's revenue from the hydrocarbon segment.
