Indian engineering and fabrication giant Larsen & Toubro (L&T) has emerged as the front runner for a sizeable offshore pipelay contract from state-controlled Oil & Natural Gas Corporation (ONGC).

The contract covers the seventh development phase of ONGC’s pipeline replacement project (PRP-7) off India’s west coast.

Two people familiar with the development told Upstream that L&T emerged as the “lowest bidder” in the tender process when bids were opened by ONGC on 13 January.

“L&T is the lowest bidder and offered close to $503 million for the offshore project,” one person said.