L&T Hydrocarbon Engineering consortium wins largest oil & gas subsea project

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Capital Market
Last Updated : Oct 04 2018 | 11:16 AM IST

From ONCG

L&T Hydrocarbon Engineering, a subsidiary of Larsen & Toubro, in consortium with Baker Hughes, a GE company and McDermott International, Inc. has been awarded the subsea contract for India's Oil Et Natural Gas Corporation's (ONGC) largest deepwater oil & gas project, the development of block DWN-98/2 in the Krishna Godavari basin.

The integrated subsea package includes the supply of all subsea production systems (SPS), including 34 deepwater trees, and the installation of subsea umbilicals, risers and flowlines (SURF) at a water depth of between 984 feet (300 meters) and 10,500 feet (3,200 meters).

LTHE's scope of work encompasses fabrication engineering, procurement and coating of around 500 kms linepipes, stalk fabrication of around 300 kms linepipes and fabrication, testing a loadout of around 185 subsea structures including 6 subsea manifolds and onshore pipeline installation. The project will further position LTHE's Kattupalli facility as a preferred fabrication base for future deepwater and ultradeep water projects on East Coast and around.

LTHE will leverage on its state of the art fabrication facility at Kattupalli, Chennai on the East Coast of India to fabricate the subsea production manifolds and SURF structures besides undertaking stalk fabrication of linepipes on the spool base. By reducing the number of interfaces across the project, the consortium aims to reduce complexity, drive speed and increase execution efficiency for ONGC.

The project is one of the first major deepwater developments in India and a milestone for realizing India's domestic energy potential. The group will offer a comprehensive solution that will also boost local manufacturing, in support of Make in India. Built on an agreement signed in 2016, LTHE and BHGE will fabricate manifolds for the first time in India as part of this project.

The subsea award represents the largest single subsea contract awarded by ONGC. Delivery is scheduled for 2020 for the gas system and 2021 for the oil system.

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First Published: Oct 04 2018 | 10:58 AM IST

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