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L&T bags USD 100 Million Songo Songo 'Gas to Energy' Project in Tanzania

Mumbai, October 9, 2002 : Larsen & Toubro Limited (L&T), India's largest engineering, construction and cement conglomerate, has won two large World Bank financed lumpsum turnkey contracts having a total order of approximately 100 million USD from Songas Limited, Tanzania. AES Corporation is the sponsor and equity holder in the project.

This Project will help promote sustainable infrastructure growth and provide increased access of electricity. Major gas fields were discovered in the Songo Songo Island region of Tanzania in the 1970s. These gas fields will now be utilized to develop cheap and reliable power by displacing expensive liquid fuel by indigenous natural gas in Tanzania.

The project involves collecting gas from 3 offshore wells and 2 onshore wells, processing it in the gas plant on the Songo Songo Island exporting it to mainland via a sub marine line and then piping it around 215 kms to Dar Es Salaam via a cross country pipeline. This gas will be utilized in the 112 MW existing gas turbine power plant in Ubungo power plant, and Twiga cement plant on Wazo Hill.

In this project, Larsen & Toubro (L&T) has total responsibility including Onshore & Offshore surveys, residual process engineering, detailed engineering, procurement, supply, fabrication, construction, commissioning and performance testing. The Oil and Gas and Special projects division of Larsen & Toubro's E&C Division and ECC division will execute this project.

"The project paves way for yet another foray of ours in the international arena and we have a very dedicated team in place to execute this project" said Mr. K Venkataramanan, Member of the Board and President (Operations), Larsen & Toubro Limited.

In the execution of this project, Larsen & Toubro will deploy its state-of-the-art IT systems including 3-D plant modeling, advanced engineering and simulation software, enterprise resource planning, e-procurement and modern communication facilities.

Songo Songo 'Gas to power' development project comes as a major milestone in Larsen & Toubro's efforts at venturing into Overseas projects and going international, as it will open up prospects for Larsen & Toubro in the fast developing East African and Middle East Oil & Gas sector projects.

About E&C Division:
Engineering and Construction Segment of Larsen & Toubro Limited (L&T) constitutes one of the largest business segments of the company providing premier services in the areas of Process technology, FEED, Basic and Detailed engineering, Skid mounted modular fabrication, Procurement, Logistics, Fabrication, Construction, Erection, Commissioning and Project Management. The Engineering and Construction Division executes projects on turnkey basis.

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L&T Bags $ 25 million EPC Contracts from KNPC, Kuwait

Larsen & Toubro Limited (L&T), India's largest Engineering and Construction Company, has recently bagged two engineering, procurement & construction (EPC) contracts from Kuwait National Petroleum Company (KNPC) for revamp of Sulphur Recovery Units at their refineries at Shuaiba and Mina Abdullah in Kuwait. The two projects, valued at US$ 14.1 million and US$ 10.7 million respectively, have been awarded to L&T against international competition.

The projects aim to enhance the existing capacities of Sulphur Recovery Streams. Both these projects are based on the proprietary 'Oxygen Enrichment' technology of M/s Parsons of the UK who are the Process Licensors for the projects.

L&T has been entrusted with the total responsibility of these projects including residual process design, detailed engineering, procurement, supply, fabrication, construction, installation and commissioning of the revamped Sulphur Recovery Units.

"Winning these two contracts has further re-confirmed L&T's emerging status as an EPC player outside India. Our consistent efforts in building relationships globally has also started yielding fruits. L&T's Engineering capabilities with 3D model experience and process intensive strength is a critical enabler to qualify for such projects," said Mr. K. Venkataramanan, L&T's President (Operations) and Member of the Board.

These contracts, which have been bagged by L&T's E&C Division, signify an important step for L&T in reinforcing its stature in the EPC Projects business in the Gulf Countries.

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L&T Bags Rs.581-crore Turnkey Refinery Order From IOC

Larsen & Toubro Limited (L&T), India's largest Engineering and Construction (E&C) Company, has bagged a Rs. 580.96-crore Lump-Sum Turn-Key (LSTK) order from Indian Oil Corporation Limited (IOCL) for its Refinery Expansion Project at Panipat. This order is for the Diesel Hydrotreater (DHDT) and Hydrogen Package and has been awarded to L&T against international competition.

IOCL is enhancing the refinery capacity by 6 million tonnes per annum (mtpa) and has entrusted this challenging task to L&T. IOCL had pre-qualified EPC (Engineering, Procurement & Construction) contractors of international repute for execution of critical packages of this project on an LSTK basis and L&T was the only qualified Indian Company.

This LSTK contract consists of a 3.5 mtpa-DHDT unit based on technology from IFP, France and a 140,000 tpa (194,600 NM3/hr) hydrogen plant based on technology from Haldor Topsoe, Denmark. This is the largest DHDT and hydrogen plant being built by IOCL at its Panipat refinery.

L&T has been entrusted with the total responsibility including residual process design, detailed engineering, procurement, supply, fabrication, construction, installation, commissioning and performance-testing for this project.

Since the entire project has to be executed in a fast track of 24 months, L&T is adopting innovative concepts during all stages of the project execution and these include state-of-the-art IT-enabled systems comprising 3-D Computer-Aided Design, Advanced Engineering and Simulation software, Enterprise Resource Planning (ERP), scheduling, e-Procurement, on-line construction material planning systems and electronic communication facilities.

This contract, which has been bagged by L&T's E&C Division, signifies an important step for L&T in reinforcing its stature in the E&C arena and in realising the vision of establishing itself as a leading global E&C contractor.