Indian Oil Corporation Awards $246 Million Lump-Sum Turnkey Contract for Paradip Refinery to Punj Lloyd

---

Researched by Industrial Info Resources (Sugar Land, Texas)--Punj Lloyd Limited (BSE:532693) (Gurgaon, Haryana), which is India's leading engineering and construction firm, has secured a $246.3 million lump-sum turnkey (LSTK) "B" package contract for the 15 million-ton-per-year Paradip refinery, which is being constructed by Indian Oil Corporation Limited (BSE:530965) (IOC) (Mumbai). As per the agreement, Punj Lloyd will provide the design, and engineering, procurement and construction (EPC) services for the project's spent-acid and sulfur-recovery facilities, and the alkylation and kerosene treatment units. The fast-track contract will be executed in 21 months.

IOC is investing $6.48 billion to build the refinery complex at Paradip in Orissa. The first phase is likely to be commissioned in 17 months. The complex, which will be built on 3,344 acres of land, will consist of a continuous catalytic reforming unit; a naphtha fractionation unit; a straight-run liquefied petroleum gas (LPG) treating unit; a sour water stripper; an atmospheric vacuum unit; an amine regeneration unit; and a naphtha hydrotreater. The refinery will process sour and heavy crude to produce diesel, naphtha, jet fuel and LPG.

IOC, which has to date invested $987 million on the refinery project, has secured a long-term loan of $3.26 billion from a consortium of Indian banks. Recently, IOC awarded a $307 million LSTK "A" package contract for the refinery to Essar Projects Limited (Mumbai), which will undertake detailed EPC, supply of equipment, installation, and performance testing of the power plant equipment. Earlier, VA Tech Wabag India Limited (BSE:533269) (Chennai, Tamil Nadu) secured a $54.8 million contract to construct an effluent treatment facility at the Paradip refinery. The company will undertake EPC, delivery, installation and commissioning of the effluent recycling and treatment unit.

In addition to the contract from IOC, Punj Lloyd, which has an order book value of almost $6 billion, is executing a $118.2 million contract for GAIL (India) Limited (BSE:532155) (New Delhi), a $63.17 million order for Harouge Oil Operations (Tripoli, Libya), and a $40.35 million contract for the West Bengal Medical Services Cooperation (Kolkata, West Bengal).

View Project Report - 89001367 89001407

Industrial Info Resources (IIR) is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. IIR's quality-assurance philosophy, the Living Forward Reporting Principle™, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.