In an exchange filing, the company stated, “Deep Industries Ltd (DIL), a leading integrated solutions provider for oil and gas field operations, has secured a significant order valued at Rs 1,402 crore from ONGC.”
The contract, spanning 15 years, is for production enhancement operations in ONGC’s Rajahmundry Asset. This is the company’s largest project to date, more than doubling its current order book, which stood at Rs 1,246 crore as of June 30, 2024.
Paras Savla, MD of Deep Industries, commented on the win: “This strategic achievement positions us to play a more integral role in the oil and gas services value chain. With over three decades of experience, we are well-equipped to optimize production using advanced techniques.”
He added, “The PEC framework not only diversifies our revenue streams but also boosts profitability, making it a value-accretive proposition for stakeholders. We remain confident in delivering exceptional outcomes, driving sustainable growth and long-term success.”Production Enhancement Contracts (PEC) are designed to boost hydrocarbon production from ageing, depleted, and mature fields, extending their operational life by about 15 years beyond their original lifespan.By 10:20 am, the stock was trading 17.7% higher at Rs 467.9 on the BSE. The small-cap firm has surged 64% over the past three months and is up 83% year-to-date.
Deep Industries, a seasoned provider of Oil & Gas support services for over 30 years, offers a comprehensive range of solutions. Their services include Natural Gas Compression, Natural Gas Dehydration, Workover and Drilling Rigs, and Integrated Project Management. The company boasts a wide array of equipment and skilled personnel, ensuring quality and safety across all service areas.