Indian Oil Corporation awards a sizable contract to L&T
L&T's energy sector, namely its hydrocarbon-onshore branch, has been awarded a sizable contract by the Indian Oil Corporation (IOCL).
Large contracts, as defined by L&T, are those with a value of between Rs 2500 crore and Rs 5000 crore.
IOCL is currently working on the Panipat refinery expansion (P-25) project in order to increase the refinery's capacity from 15 million metric tonnes per annum (MMTPA) to 25 MMTPA (million metric tonnes per annum). This is being done in order to satisfy the rising demand for petroleum products as well as to boost the company's long-term profitability and competitiveness.
For
the P-25 Project, the engineering, procurement, building, and commissioning
(EPCC) contract is for the setting up of a Residue Hydrocracker Unit (RHCU).
The RHCU, which has a capacity of 2.5 MMTPA and is licenced by Axens (France), will convert the vacuum residue (VR) into high-value commercial goods (mainly diesel). Lump Sum Turnkey (LSTK) is the foundation on which the contract is given once it has been won via international competitive bidding.
Current Issue
12-2025
