Construction and engineering major Larsen and Toubro (L&T) has bagged a 'large' contract worth up to Rs 5,000 crore from state-owned oil major Indian Oil Corporation Limited (IOCL).

The Hydrocarbon-Onshore division of L&T’s Energy Business has bagged the engineering, procurement, construction and commissioning (EPCC) contract from IOCL for setting up a Residue Hydrocracker Unit (RHCU) for the state-owned oil major's P-25 project.

IOCL is implementing the Panipat Refinery Expansion (P-25) Project to enhance refining capacity from 15 MMTPA to 25 MMTPA to meet the growth in demand of petroleum products and to increase their profitability and competitiveness in the long run.

"The RHCU is licensed by Axens (France) with a capacity of 2.5 MMTPA and will upgrade the Vacuum Residue (VR) to high-value commercial products (mainly diesel). The contract is awarded through international competitive bidding on a Lump Sum Turnkey (LSTK) basis," L&T said in a statement on Monday (22 August).

Though the company has not revealed the exact value of the order, the contracts falls under 'large' category which ranges between Rs 2,500 crore to Rs 5,000 crore.

Earlier, L&T had bagged a 'significant' EPCC contract worth up to Rs 2,500 crore for setting up Diesel HyDro Treating (DHDT) Unit (5.0 MMTPA, licensed by Shell) under the same P-25 Project of IOCL at Panipat-Refinery, the company said.

Commenting on the win, Mr. Subramanian Sarma, Whole-time Director & Sr. Executive Vice President (Energy) said, “We are very delighted to be part of this large expansion project of IOCL-Panipat. I would like to thank IOCL for having trust in our capabilities. We are fully committed to delivering the complex process units with high standards of HSE and Quality".