look news india
Deep Industries Limited: Deep Industries Limited (DIL), a leading provider of integrated solutions for oil and gas field operations, has announced that it has received a significant order worth Rs 1,402 crore from Oil and Natural Gas Corporation (ONGC). The agreement is for enhancing production in mature fields of ONGC's Rajahmundry asset and has a tenure of 15 years. This is the largest project ever awarded to the company, more than doubling its current order book. The company's order book as of June 30, 2024 stood at Rs 1,246 crore.
Commenting on this significant win, Paras Savla, MD, Deep Industries Limited, said, “We are thrilled to announce this significant achievement as we continue to expand our expertise in Product Enhancement Contracts (PECs). This strategic win positions us to play an integral role in the emerging oil and gas services value chain. With over three decades of experience in the field, Deep Industries is well equipped to optimize oil and gas production through the use of proven, advanced technologies.
The PEC structure not only expands our revenue streams but also enhances our profitability, making it a value-creative proposition for our stakeholders. We believe in our ability to achieve exceptional results, sustainable growth and long-term success.
The objective of Production Enhancement Contracts (PECs) is to enhance hydrocarbon production from old, exhausted and mature fields by typically extending the life of the asset for about 15 years beyond its original life, In the Rajahmundry asset, ONGC is currently using safe and efficient operating practices and appropriate techniques and technologies to develop the hydrocarbon reserves from the contract areas in a manner that improves production and ultimate hydrocarbon recovery.