Major EPC Oil and Gas Companies India 2020

The Meaning of EPC

Engineering, Procurement and Construction (EPC) is a particular form of contracting arrangement used in some industries where the EPC contractor is made responsible for all the activities from design, procurement, construction, commissioning and handover of the project to the end-user or owner.

It is a prominent form of contracting agreement in the construction industry and companies that deliver EPC Projects are commonly referred to as EPC Contractors. Normally, the EPC Contractor must execute and deliver the project within an agreed time and budget, commonly known as Lump Sum Turn-Key (LSTK) Contract. An EPC LSTK Contract places the risk for schedule and budget on the EPC Contractor.

Brief History of Oil & Gas in India

The first oil production started in India in 1889 near the town of Digboi in the state of Assam. It was during the construction of the Dibrugarh-Ledo Railway line in 1882 when the big oil seepage was first discovered. A small thatched structure was erected and christened ‘Oil Well No. 1’ or ‘Discovery’ and this discovery came at the beginning of the industrial revolution.

Till Independence in 1947 oil in India was mostly exploited by British companies and it wasn’t till 1956 when the Indian government adopted an industrial policy that placed oil as a ‘Schedule A’ industry and put its future development in the hands of the state owned Oil and Natural Gas Commission (ONGC). It gave ONGC the powers to plan, organise and implement programmes for the development of oil resources and the sale of petroleum products and also to perform plans sent down from the central government.

Economic liberalisation in India in 1991 paved the way for India to emerge as a free market economy. This invited a host of foreign companies to invest in the various industries in India. Oil & Gas was no different with ONGC having to sell 2% of its stake. Despite this the government still plays a pivotal role and ONGC is responsible for 77% of oil and 81% of gas production, while Indian Oil Corporation (IOC) owns most of the refineries putting it within the top 20 companies in the world. Liberalization also gave rise to EPC companies dealing specifically with the oil and gas sector. Let’s look at some of the Major EPC Oil & Gas Companies in India in 2020.

Major EPC Oil & Gas Companies in India in 2020

1. 1. Larsen & Toubro Ltd. (L&T)

2. L&T set up offices in Calcutta, India just after India’s independence in 1947. In 1948 it acquired 55 acres of land in Powai, Mumbai, Maharashtra and it became the site of its main manufacturing hub. In 1956 L&T moved to a building in Ballard Estate in Mumbai which is today known as L&T House. L&T has remained one of India’s top EPC Oil & Gas Companies for the past seven decades.

3. 2. TechnipFMC

4. TechnipFMC is a global oil and gas company that provides complete life cycle services for the energy industry. It was ranked 23rd among the world’s Top 225 International Design Firms in the year 2017. It was formed through a merger of FMC Technologies Inc. and French oil-services Technip SA and has its headquarters in Houston (USA), Paris (France) and London (U.K.). It takes away a large number of EPC contracts awarded in India and is one of the biggest EPC contractors in the country.

5. 3. McDermett India

6. McDermett India is part of McDermett International Inc. which is a Panama based engineering, procurement, construction and installation company. It has a pan-world presence and has its headquarters in the Energy Corridor area of Houston, Texas. In December 2019 McDermett was awarded the EPC Company of the year in New Delhi, India for its work completed for ONGC in 2018 making it one the biggest EPC contractors.

7. 4. Punj Lloyd

8. Another local India EPC company with international presence and operations spread across the Middle East, Africa, the Asia Pacific, South Asia and Europe. The foundation of the company was laid by its chairman Atul Punj in 1982 when he started the pipeline division of his family business, Punj Sons Private Limited and in 1989 the company rechristened to its current name. It is one of the market leaders in the EPC contracting industry.

9. 5. McNally Bharat Engineering Company Ltd. (MBECL)

10. McNally Bharat Engineering Company Ltd. Is one the leading engineering companies in India and was incorporated in 1961 under the name McNally Bird Engineering Company Ltd. As a joint venture between McNally Pittsburg, USA and Bird & Co. The company has its headquarters in Kolkatta, India and is engaged in providing turnkey solutions in the areas of power, steel, aluminium, coal, ash, port cranes and industrial water supply.

11. 6. Samsung Engineering India Pvt. Ltd.

12. Samsung Engineering India Pvt. Ltd. is a part of Samsung Engineering Co. Ltd. based in Korea. Established in 1970 Samsung Engineering as an EPC company provides a full range of engineering services including feasibility studies, design, procurement, construction and commissioning. The company has projects in over 38 countries worldwide. I India, Samsung Engineering was established in 2006 and since then has become a prominent and valuable EPC company in the market.

13. India is the third largest consumer of oil & gas in the world and although there are many more players in the EPC market, the above six EPC contractors are the biggest players in the industry. With India’s Oil & Gas consumption said to triple by 2035 there is enough scope for emerging EPC Contractors to get a fair share of the pie.

David Swift - A freelance blogger, social media manager and career enthusiast, belongs to the land of poets and thinkers - Germany.