Larsen & Toubro Signs 6-Year Oman Hydrocarbon EPC Agreement

MUMBAI, India — L&T Energy Hydrocarbon Onshore, the onshore engineering and construction vertical of Indian technology and infrastructure conglomerate Larsen & Toubro Ltd (LART.NS), has executed a six-year Engineering, Procurement, and Construction (EPC) framework agreement with Oman’s premier oil and gas producer, Petroleum Development Oman (PDO). The deal was announced in regulatory filings on July 31, 2026.

Under the terms of the strategic framework, L&T Energy Hydrocarbon Onshore has been selected as one of four designated EPC contractors eligible to compete for PDO’s upcoming front-end engineering design (FEED) and turnkey construction projects over the next six years. This development reinforces L&T’s long-standing operational presence in the Sultanate of Oman and enhances its order book visibility across the Middle Eastern hydrocarbon landscape.

Strategic Framework and Contractor Selection

The newly executed agreement creates a streamlined framework for Petroleum Development Oman to allocate major onshore energy infrastructure tenders. Rather than conducting isolated global pre-qualification cycles for every individual project, PDO selected four global EPC entities to participate directly in upcoming FEED and construction bids.

L&T Energy Hydrocarbon Onshore brings its integrated engineering, procurement, modular fabrication, and construction capabilities to the long-term agreement. The company leverages specialized modular manufacturing yards in Sohar, Oman, alongside engineering design hubs in India, providing cost-competitive execution models.

The scope of work under future contract allocations within the framework is expected to encompass:

• Upstream Field Developments: Engineering and construction of oil and gas gathering stations, wellhead units, and fluid separation facilities.

• Gas Processing and Compression: EPC implementation of gas depletion compression plants and sweetening units across PDO concessions.

• Cross-Country Pipelines: Installation of high-pressure hydrocarbon transport pipelines connecting central processing facilities to export terminals.

• In-Country Value (ICV) Initiatives: Sustained engagement with local Omani suppliers, sub-contractors, and workforce training programs to build regional capability.

Expanding Footprint Across the Middle Eastern Energy Sector

The framework agreement strengthens Larsen & Toubro's international hydrocarbon order pipeline at a time when Gulf Cooperation Council (GCC) nations are investing heavily in upstream production maintenance and gas infrastructure.

L&T Energy Hydrocarbon has previously executed complex lump-sum turnkey projects for Petroleum Development Oman, including the Saih Nihaydah and Kauther depletion compression projects. Beyond Oman, the business maintains active project portfolios in Saudi Arabia with Saudi Aramco, in the United Arab Emirates with ADNOC Gas Processing, and in Kuwait with Kuwait Oil Company.

L&T Energy Hydrocarbon Middle East Regional Presence
┌─────────────────────────────────────────────────────────────┐
│                    REGIONAL INFRASTRUCTURE                  │
│ Modular Fabrication Facilities: Sohar (Oman) & Hazira (India)│
│ Engineering Design Hubs: L&T-Chiyoda & L&T-GULF             │
└──────────────────────────────┬──────────────────────────────┘
                               │
            ┌──────────────────┴──────────────────┐
            ▼                                     ▼
┌───────────────────────┐             ┌───────────────────────┐
│ OMAN FRAMEWORK        │             │ KEY GCC CLIENTS       │
│ • 6-Year EPC Agreement│ ◄─────────► │ • Petroleum Dev. Oman │
│ • 1 of 4 Select Panel │ Strategic   │ • Saudi Aramco        │
│   Contractors for PDO │ Positioning │ • ADNOC Gas Processing│
└───────────────────────┘             └───────────────────────┘

Economic and Operational Impact

The six-year agreement yields tangible advantages for investors, regional businesses, and energy sector stakeholders:

• For Investors: Offers revenue visibility and lowers bidding overhead costs by placing L&T on a pre-screened short-list for upcoming PDO capital expenditure tenders.

• For Businesses and Subcontractors: Generates long-term commercial opportunities for Omani sub-tier vendors, logistics providers, and specialized equipment suppliers aligned with Oman's In-Country Value mandates.

• For the Energy Sector: Ensures rapid project mobilization and standardized safety and technical standards across PDO's onshore asset portfolio.

Official Sources Section

Details of the six-year framework agreement were confirmed via official corporate announcements and regulatory disclosures submitted to:

• The regulatory portal of the National Stock Exchange of India (NSE).

• Official investor communication releases by Larsen & Toubro Limited.

• Corporate media publications from Petroleum Development Oman (PDO).

Quote Section

"This Framework Agreement marks an important milestone in our long-standing association with Petroleum Development Oman," stated E.S. Sathyanarayanan, Senior Vice President & Head of L&T Energy Hydrocarbon Onshore. "We look forward to supporting PDO's development plans through safe, innovative, and sustainable project delivery, while contributing to Oman's long-term energy and economic growth objectives."

Why It Matters

Long-term framework agreements are increasingly replacing isolated project tenders in the global energy sector. For L&T, securing a six-year preferred contractor position with Petroleum Development Oman guarantees early-stage access to major capital projects, reducing customer acquisition costs and stabilizing capital utilization across its international fabrication and engineering divisions.

Key Facts at a Glance

• Agreement Duration: Six-year framework agreement (2026–2032).

• Contracting Entities: L&T Energy Hydrocarbon Onshore and Petroleum Development Oman (PDO).

• Panel Position: L&T selected as one of four global EPC contractors for upcoming FEED and construction projects.

• Local Capability Focus: Direct commitment to In-Country Value (ICV) development in Oman.

Frequently Asked Questions (FAQs)

What is the scope of the agreement between L&T and Petroleum Development Oman?

The six-year framework agreement selects L&T Energy Hydrocarbon Onshore as one of four pre-qualified contractors to bid on and execute upcoming front-end engineering design (FEED) and EPC projects for Petroleum Development Oman.

What is Petroleum Development Oman (PDO)?

Petroleum Development Oman is the leading oil and gas exploration and production company in the Sultanate of Oman, accounting for the majority of the nation's crude oil production and natural gas supply.

What is In-Country Value (ICV) in the context of this contract?

In-Country Value refers to L&T's commitment to utilize local Omani suppliers, subcontract to regional businesses, and foster local workforce skills during the execution of engineering and construction projects.

Sources: National Stock Exchange of India (NSE), Larsen & Toubro Limited, Petroleum Development Oman.