L&T signs six-year EPC framework agreement with leading Omani gas producer

Kuwait Petroleum Corporation (KPC) announced on Saturday that its subsidiary, Kuwait Oil Company (KOC), has signed a $16 billion agreement with a consortium of international investors. The deal aims to develop the country's crude oil pipeline infrastructure.

Peregrine Project Details

According to KPC, this transaction, named Project Peregrine, represents the largest foreign direct investment in Kuwait's history. The agreement stipulates the creation of a joint venture based in Kuwait, which will include investment funds managed by Blackstone, Brookfield, and KKR.

Ownership Structure and Rights

KOC will retain a controlling stake of 51%, while the consortium jointly owns the remaining 49%. The agreement grants the joint venture rights to use a network of 13 KOC oil export pipelines, spanning approximately 320 kilometers. KOC will continue to own, operate, and maintain these assets under a 20.5-year lease agreement with an option to repurchase, while all decisions regarding production and processing remain under the control of the Kuwaiti state.

Financial Aspects and Statements

KPC reported that the expected initial revenue from this deal will be $7.85 billion after closing, which will help finance the company's investment plans. KPC Deputy Chairman and CEO, Sheikh Nawaf Saud Al-Sabah, called the project a 'defining milestone' in Kuwait's economic development. He emphasized that this aligns with the government's commitment to attracting leading international investors while 'retaining full national control and ownership of strategic assets.'

He also noted that the agreement sends a 'strong signal' that Kuwait remains an attractive destination for international capital despite regional difficulties. Leaders of the three investment firms also welcomed the partnership. KPC clarified that the deal is still subject to regulatory approvals and fulfillment of other standard legal requirements.

Larsen & Toubro (L&T) has signed a series of Engineering, Procurement, and Construction (EPC) contracts with leading domestic companies in the mining and metallurgy sectors.

New Contracts in the Mining Industry

Specifically, L&T received a contract to build an iron ore processing complex in the state of Chhattisgarh. This order came from India's largest state-owned iron ore producer. The project is part of the expansion program of this mining enterprise, aiming to increase iron ore production to 100 million tonnes per year by 2030.

The scope of work for this project includes the development and design, procurement, installation, and commissioning of a downward conveyor system, a sorting plant, a stockpiling yard, yard equipment, as well as a Rail Wagon Loading System (RWLS) and associated auxiliary facilities.

Expansion of Metallurgical Capacity

Furthermore, the company secured several Design & Build and Balance of Plant (BoP) packages from a Navratna-category public sector undertaking. These works relate to the expansion of a steel plant in West Bengal, increasing its capacity from 2.5 million tonnes per year to 7.1 million tonnes per year.

Zinc Processing Project

In addition, L&T won an EPC order from a private metal producer to build a zinc processing plant. This contract covers all stages: design and engineering, procurement, installation, commissioning, and related site services.

Comments from L&T Management

Commenting on the acquired contracts, L&T Chairman and Managing Director, S.N. Subrahmanyan, noted that these agreements 'confirm L&T's enduring leadership in the minerals and metals EPC sector and reflect the deep trust clients have in our ability to execute projects of exceptional scale and complexity.'

T. Kumaresan, Senior Vice President and Head of Utilities and Metals at L&T, added that the orders in the mining, ferrous, and non-ferrous metals sectors strengthen client confidence in L&T's engineering expertise and capability to deliver projects, thereby reinforcing the company's position as a reliable partner in the development of India's metal and mineral infrastructure.