Order Win / Contract Award
Deep Industries Secures ₹83.81 Crore ONGC Contract for Gas Compression Services in Assam
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Deep Industries Limited has received a Letter of Award (LoA) from Oil and Natural Gas Corporation Limited (ONGC) for providing charter hiring services for gas compression at the Lakhmani GGS-5 asset in Assam. The contract carries an estimated value of approximately ₹83.81 crore and will be executed over a period of three years.
PRICE-SENSITIVE TRIGGER
Event: Receipt of Letter of Award from ONGC.
Type: Order Win / Contract Award
Impact: Positive
Immediate Effect: The order strengthens Deep Industries’ order book within the oil and gas services segment and provides medium-term revenue visibility through a three-year execution period.
Key Metrics:
- Order Value: ₹83.81 Crore (Estimated)
- Contract Duration: 3 Years
- Customer: Oil and Natural Gas Corporation Limited (ONGC)
- Project Location: Lakhmani GGS-5, Assam Asset
- Service Type: Charter Hiring Services for Gas Compression
Highlight:
- New Contract Award: Deep Industries wins ONGC contract valued at approximately ₹83.81 crore for gas compression services.
What Happened ?
Deep Industries Limited informed the stock exchanges that it has received a Letter of Award from Oil and Natural Gas Corporation Limited (ONGC) for charter hiring services related to gas compression operations at the Lakhmani GGS-5 facility under ONGC’s Assam Asset.
The contract has an estimated value of approximately ₹83.81 crore and is scheduled to be executed over a period of three years. The company stated that the award has been received in the ordinary course of business and does not involve any promoter or related-party interest.
Key Details
ONGC Gas Compression Services Contract:
- Awarding entity is Oil and Natural Gas Corporation Limited (ONGC).
- Contract relates to charter hiring services for gas compression.
- Project will be executed at ONGC’s Lakhmani GGS-5 Assam Asset.
- The contract has been awarded by a domestic entity.
- Total estimated contract value is approximately ₹83.81 crore.
- Execution period is three years.
- The order has been received in the normal course of business.
- No promoter, promoter group or group company interest exists in the awarding entity.
- The transaction does not qualify as a related-party transaction.
Note:
- The contract reinforces Deep Industries’ presence in the upstream oil and gas services segment and enhances medium-term business visibility through a multi-year service engagement with ONGC.
Risk Analysis
Summary:
- While the contract adds revenue visibility, actual realization will depend on successful execution, operational uptime, and adherence to customer performance requirements over the contract tenure.
Key Risks:
- Revenue recognition will be spread across the three-year execution period.
- Project performance remains subject to operational and field execution risks.
- Delays or disruptions at the customer asset could affect service deployment schedules.
- Energy sector spending and operational requirements may influence contract utilization levels.
- Profitability will depend on execution efficiency and cost management throughout the contract period.
Worst Case:
- Operational challenges, lower-than-expected utilization, or execution disruptions could reduce the economic benefits expected from the contract despite the awarded value.
Risk Level: Low
Company Commentary
- Deep Industries has received a Letter of Award from ONGC for gas compression services.
- The contract pertains to ONGC’s Lakhmani GGS-5 Assam Asset.
- The estimated value of the award is approximately ₹83.81 crore.
- The contract period is three years.
- The company confirmed that the award was received in the ordinary course of business.
- The company confirmed that there is no promoter or related-party interest associated with the award.
Official Exchange Filing: Deep Industries Limited
