L&T Signs Six-Year EPC Framework Agreement With Petroleum Development Oman; Shares Edge Up

Mumbai, July 31: Larsen & Toubro’s (L&T) Energy Hydrocarbon Onshore business has signed a six-year engineering, procurement and construction (EPC) framework agreement with Petroleum Development Oman (PDO), deepening a relationship that has spanned several years in one of the Middle East’s largest energy markets.

The agreement positions L&T as one of four EPC contractors selected by PDO to participate in its upcoming front-end engineering design (FEED) and EPC projects during the six-year contract period. Rather than representing a single project award, the framework agreement gives L&T the opportunity to bid for and execute multiple assignments as PDO rolls out new developments.

For L&T, the significance lies in securing a long-term place within PDO’s preferred contractor network. The company will leverage its engineering expertise, project execution capabilities and global experience to support the Omani energy major’s future expansion plans.

The agreement also aligns with Oman’s focus on increasing In-Country Value (ICV) by encouraging participation from local suppliers, subcontractors and service providers. L&T said it remains committed to contributing to local capability development alongside delivering complex energy infrastructure projects.

Strategic Win Enhances Visibility in the Middle East

Framework agreements of this nature are often viewed as strategically important because they provide contractors with access to a pipeline of future opportunities without guaranteeing a fixed order value upfront.

Although the company has not disclosed the financial value of the agreement, being shortlisted as one of only four EPC partners significantly improves L&T’s visibility in PDO’s future project awards across upstream, midstream and downstream oil and gas infrastructure.

The Middle East continues to be one of L&T Energy Hydrocarbon’s largest international markets. Over the years, the business has executed refinery expansions, gas processing facilities, petrochemical complexes, LNG terminals, fertiliser plants and cross-country pipeline projects across the region.

The latest agreement reinforces L&T’s standing as a trusted engineering partner for national oil companies at a time when Gulf nations continue investing in energy security and production capacity.

Stock Market Snapshot

The announcement was met with a measured response from investors in early trade.

As of 9:38 AM IST on July 31, 2026, L&T share price was trading at ₹3,945.60, up ₹7.90 or 0.20%.

While the agreement does not immediately add a defined order value to L&T’s order book, investors typically view such long-duration framework contracts positively because they improve the company’s chances of securing future EPC projects from an established client.

Company Background

Larsen & Toubro is one of India’s largest engineering and infrastructure companies, with operations spanning EPC projects, manufacturing, technology services and high-tech engineering solutions. Its Energy Hydrocarbon business executes large-scale projects across the oil and gas value chain for clients in India and overseas.

Petroleum Development Oman is the Sultanate’s leading exploration and production company and accounts for the majority of the country’s crude oil and natural gas output, making it one of the region’s most important energy clients.

Conclusion

The six-year framework agreement does not bring an immediate order inflow, but it places L&T in a strong position to compete for a steady stream of EPC opportunities from one of the Middle East’s largest energy producers.

For investors, the announcement underscores the company’s continued strength in international energy infrastructure and its ability to secure long-term strategic partnerships. The market will now watch for individual project awards under the framework agreement, which could translate into fresh additions to L&T’s order book over the coming years.

Source:

• https://nsearchives.nseindia.com/corporate/PAM_31072026093000_PressRelease31072026.pdf
• https://www.nseindia.com/get-quote/equity/LT/Larsen-&-Toubro-Limited