On September 7, 2024, Deep Industries Ltd (DIL), a key player in providing solutions for oil and gas field operations, announced a major order worth ₹1,402 crore from Oil and Natural Gas Corporation (ONGC).
The contract, which focuses on boosting production in ONGC’s mature fields at the Rajahmundry Asset, will last for 15 years. This is the largest project ever awarded to the company and has more than doubled its existing order book. As of June 30, 2024, DIL’s order book was valued at ₹1,246 crore.
Commenting on the significant win, Mr Paras Savla, MD, Deep Industries Ltd, said, “We are thrilled to announce this landmark achievement as we extend our expertise into Production Enhancement Contracts (PEC). This strategic win positions us to play an increasingly integral role in the evolving oil and gas services value chain.”
He further added, “With over three decades of experience in the sector, Deep Industries is well-equipped to optimise oil and gas production through the deployment of proven, advanced techniques. The PEC framework not only broadens our revenue streams but also enhances our profitability, making it a value-accretive proposition for our stakeholders. We remain confident in our ability to deliver exceptional outcomes, driving sustainable growth and long-term success.”
Production Enhancement Contracts (PEC) aim to boost hydrocarbon production from old, depleted, and mature fields, typically extending the field’s life by around 15 years. At the Rajahmundry asset, ONGC plans to tap into hydrocarbon reserves further in a way that enhances current production and overall recovery. This will be done using safe, efficient practices along with appropriate techniques and technologies.
Deep Industries Ltd. has been offering a range of support services to the oil and gas industry for over 30 years. Its services include natural gas compression, natural gas dehydration, workover and drilling rigs, and integrated project management. The company has become a “one-stop solution” for all oil and gas field operation needs. Its wide range of services is backed by equipment that covers everything from exploration and production to midstream services, along with skilled workers, all while ensuring safety and quality.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.
We're Live on WhatsApp! Join our channel for market insights & updates
Get the link to download the App
