Deep Industries’ shares skyrocketed over 19 per cent and hit a record high of Rs 473.50 on September 9 after the company received an order worth Rs 1,402 crore from Oil and Natural Gas Corporation (ONGC).
Deep Industries’ share price uptick came after the company announced that it secured an order worth Rs 1,402 crore from Oil and Natural Gas Corporation (ONGC).
In an exchange filing, the company said, “Deep Industries said, Ltd (DIL), a leading integrated solutions provider for Oil & Gas field operations, has announced a significant order win valued at Rs 1,402 crore from Oil and Natural Gas Corporation (ONGC).”
According to the company, the contract is for Production Enhancement Operations in the mature fields of ONGC’s Rajahmundry Asset and spans a duration of 15 years.
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.
At the Rajahmundry asset, ONGC aims to enhance hydrocarbon reserves in the Contract Areas by adopting safe, efficient operating practices, and utilising suitable techniques and technologies to improve both current production levels and overall hydrocarbon recovery.
“This is the largest project awarded to the company to date, more than doubling its current order book. As on June 30, 2024, the company’s order book stood at Rs 1,246 crore,” Deep Industries 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,” said Paras Savla, MD, Deep Industries.
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.
Since its inception in the 1990s, Deep Industries has expanded from pioneering Gas Compression services on a charter hire basis to include Natural Gas Dehydration and Integrated Project Management Services. Recently, Deep has further innovated by offering complete Gas Processing Facilities on charter hire, becoming the first company in India to provide such unique services.
Shares of Deep Industries are currently trading with gains of 16 per cent at Rs 462.7. The stock has snapped a two-day losing streak post today’s surge.
The stock has risen 81 per cent so far in 2024. Over a five-year period, the stock has risen 2,141 per cent.
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