Deep Industries, a provider of integrated solutions for oil and gas field operations, has announced a contract win from India’s Oil and Natural Gas Corporation (ONGC).
The contract, valued at around Rs14.02bn, is for production enhancement operations at ONGC's mature fields in the Rajahmundry asset and spans a period of 15 years.
In a stock filing, the company said the project is the largest ever contract it has received, effectively more than doubling its current order book, which stood at Rs12.46bn as of 30 June 2024.
Production enhancement contracts (PECs) like this are designed to increase the production of hydrocarbons from ageing, depleted and mature fields, often extending the asset's life by around 15 years.
ONGC aims to further develop hydrocarbon reserves from the contract areas at the Rajahmundry asset.
The goal is to improve current production and ultimate recovery of hydrocarbons by applying safe, efficient operating practices and suitable technologies.
Deep Industries claims to have more than 30 years of experience in providing various oil and gas support services.
The company's service portfolio also includes natural gas compression, dehydration, workover and drilling rigs services, and integrated project management services.
Deep Industries MD Paras Savla 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. 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.”
In a separate development, ONGC recently opened a new well in its deep-sea project in the Krishna Godavari basin.
This is part of ONGC's flagship project in the Bay of Bengal and follows the commencement of oil production from the KG-DWN-98/2 or KG-D5 block earlier this year.
