The project for Oil and Natural Gas Corporation (ONGC) involves engineering, procurement and installation of over 200km of fixed and flexible pipelines, 80km off the coast of Mumbai.

Offshore works on the Pipeline Replacement Project-2 (PRP-2) will begin in November and will continue during the period of suitable weather from November to May each year, for the next three years.

Stage 1 is expected to be completed in May next year, Stage 2 in 2010 and Stage 3 in 2011.

Leighton International managing director David Savage said the new project underlined Leighton's oil and gas credentials, and further consolidated the company's operations in India.

"This is the second pipeline replacement project being launched by ONGC with more expected in the coming years," he said.

"This is indicative of the type and scale of oil and gas opportunities available to the company within the region.

"The project pushes our work in hand to a record $US3.2 billion. We expect to be able to further increase this figure over the next few months, with the conversion of a number of good prospects in the Arabian Gulf."

According to Leighton, its oil and gas division in India has grown considerably over the past year following the completion of two oil pipeline projects for Reliance Industries and Kochi Refineries.

"India continues to be a key market for Leighton International and we see further opportunities in oil and gas," Savage said.

"We also have strong prospects in transport infrastructure - particularly roads and rail, residential, industrial and commercial building, and contract mining."

ONGC is Asia's largest oil and gas exploration and production company. The company holds the largest share of hydrocarbon acreages in India and contributes over 78% of India's oil and gas production.