Mumbai, February 19, 2007: Maersk Oil Qatar has awarded Larsen & Toubro Limited (L&T), a contract valued in the order of a quarter of billion dollars for its Block 5 development in Qatar, consisting of two new offshore platform top-sides, a flare platform and interconnecting bridge. This is one of L&T's largest overseas project orders, and reflects the international oil company's confidence in L&T as a reliable source for single-point execution of vital energy sector projects. The order was won against stiff international competition from contractors from western countries. Maersk Oil Qatar is developing the field under a production-sharing agreement with Qatar Petroleum. To be executed in 28 months, the Block 5 Package 14 project consists mainly of two 2300-tonne topsides with facilities for oil production and export. It will demonstrate L&T's strengths in project management, concurrent engineering, global sourcing, quality fabrication at L&T's manufacturing facility in Hazira, Gujarat, sea installation and flawless commissioning for offshore platform and pipeline projects. L&T is also building its own 3000 T Heavy Lift Pipelay Vessel, to be completed by 2008, which will further increase its value addition and capability for such projects. This particular order for Maersk will be executed by L&T in alliance with its project partners Aker Kvaerner and Seaway Heavy Lifting of the Netherlands, acting as subcontractors. Qatar, with its abundant resources, besides Saudi Arabia and UAE, is home to many upstream oil & gas projects promoted jointly by Shell, ExxonMobil, Occidental and other oil majors. This breakthrough order from Maersk will open the gates to increase L&T's share of the burgeoning Middle East hydrocarbon projects. L&T is building a world-class fabrication facility at Sohar in Oman with deep water capability and all-weather delivery into such projects, starting with the flare platform and bridge for this project.

Larsen & Toubro Limited (L&T) has won a large scale turnkey contract valued at Rs. 1150 crore from Indian Oil Corporation Limited (IOCL) for setting up a captive cogeneration power plant in Panipat, Haryana. The contract involves project management, engineering, procurement and construction of the power plant for IOCL's naphtha cracker project at its petrochemical complex in Panipat. The power plant comprises five gas turbines, five heat recovery steam generators, three steam turbines, two utility boilers and sophisticated control systems to ensure uninterrupted supply of power and steam to the naphtha cracker complex. To be commissioned within 32 months, the plant will have an installed capacity of 227 MW of power and over 800 tph of process steam. L&T bagged this prestigious order against keen competition from reputed EPC contractors on the strength of its track record in executing similar projects meeting stringent quality requirements. Engineers India Limited, who is the Project Management Consultant to IOCL, had invited offers under the International Competitive Bidding route. This is the second major contract won by L&T for IOCL's Panipat Naphtha Cracker Project. L&T and the Toyo consortium had earlier bagged the turnkey contract for naphtha cracker and associated units. L&T has participated in the setting up of several major power generations projects in India and abroad.

The consortium of Larsen & Toubro Limited (L&T) - India's leading engineering and construction organization - and Toyo Engineering Corporation (Toyo), Japan, has won a large scale turnkey contract valued over Rs. 2600 crores from Indian Oil Corporation Limited (IOCL). This contract is for project management, engineering, procurement and construction of naphtha cracker and associated units at IOCL's Panipat petrochemical complex in Haryana. Toyo, the leader of the consortium, would undertake work for the cracker plant section on EPC basis and overall project management, while L&T would undertake work for the cracker heaters and associated units, namely C4 hydrogenation, pyrolysis gasoline hydrogenation, and benzene extraction units, also on EPC basis. The share of L&T's Petrochemical Business Unit in the contract is Rs. 900 crores. Once operational, this naphtha cracker would be one of the largest and world-scale capacity plants in India. IOCL would process naphtha from its Panipat, Mathura and Gujarat refineries to produce ethylene, propylene and benzene at this naphtha cracker. The technology for the cracker is licensed by IOCL from ABB Lummus of USA.