### **Overview** Deep Industries Limited (DIL) is a leading Indian oil and gas services company with over **30 years of experience**, offering integrated solutions across the upstream and midstream value chain. The company operates as a **one-stop solution provider** for onshore and offshore oil and gas field operations, with a strong focus on **technical excellence, operational efficiency, and innovation** in energy infrastructure services. --- ### **Core Business Segments** #### **1. Onshore Oil & Gas Services** - **Drilling & Workover Rig Services**: DIL owns and operates **12 workover rigs** (30T to 150T capacity) and **6 drilling rigs** (1000 HP each), supporting E&P companies in challenging terrains across Rajasthan, Assam, Arunachal Pradesh, and other hydrocarbon basins. - Long-term contracts with **PSUs (e.g., ONGC, Oil India) and MNCs**. - Approved drilling contractor by **Kuwait Oil Company (KOC)**, enabling international expansion. - **Integrated Project Management (IPM)**: - A **pioneer in India**, offering turnkey, end-to-end IPM services under single contracts. - Combines drilling, cementing, air drilling, hydro fracturing, coiled tubing, geophysical logging, and well completion. - Reduces client cost, enhances coordination, and accelerates project timelines. - **Natural Gas Processing Services**: - A market leader in **gas compression** (75% market share) and **gas dehydration**. - Provides services on a **charter hire (Build-Own-Operate)** model, reducing client capital burden. - Fleet includes 87,000 HP of compression capacity and ~4.35 MMSCMD dehydration capacity. - Customized solutions for diverse gas compositions and field conditions. - **Charter Hiring of Full Gas Processing Facilities**: - First company in India to convert traditional **EPC projects** into **rental-based facility operations**. - Projects like **“Project Jaya”** showcase fully integrated surface and processing facilities on a single well pad under charter hire. #### **2. Production Enhancement & Field Services** - Secured a **15-year, ₹1,402 crore Production Enhancement Contract (PEC)** with **ONGC** for a mature oil field — one of the first such contracts awarded. - Revenue is **performance-linked**, tied to **64% of incremental production**. - Operations began in **April 2025** at the **Rajahmundry field**, with front-loaded revenue expected in the first 10 years. - High EBITDA margins projected due to efficient operations and asset utilization. - Focus on expanding presence in **mature and depleted fields** to enhance domestic hydrocarbon recovery. #### **3. Offshore & Subsea Services** - Strategic entry into offshore operations via the **acquisition of Dolphin Offshore Enterprises (India) Ltd** in 2022 through NCLT. - Owns advanced assets like the **DP2 dynamically positioned accommodation barge "Prabha"**, operated via **Beluga International DMCC (UAE)**. - Prabha commenced revenue generation in **May 2025**, under a **3-year, $32.85 million (~₹281 crore)** lease with **Ballast Shipping S.A. DE C.V. (Mexico)**. - Expected **~60% EBITDA margin** due to high rental rates and technical capabilities. - Targets four key offshore segments: 1. Offshore Oil & Gas 2. Offshore Wind Energy 3. Undersea Data Cable Networks 4. Subsea Gas & Power Transmission - Additional subsidiaries support operations in **Mexico, UAE, and Mauritius**, enhancing global reach. --- ### **Strategic Growth Drivers** #### **1. Shift to Value-Added, Service-Driven Models** - Transitioned from traditional **EPC contracts** to **service-based models** like: - Lease-Operate-Maintain (LOM) - Charter hiring of gas processing plants - Integrated, performance-linked contracts (e.g., PECs) - Positions the company for **recurring, high-margin revenue streams**. #### **2. Expansion & Diversification** - **Onshore**: Expanding rig fleet, targeting deeper wells (2000 HP rigs via JV with Euro Gas), and increasing deployment in key basins. - **Offshore**: Leveraging Dolphin Offshore acquisition for faster market entry; future opportunities in DSVs, PSVs, and AHTs. - **Unconventional & EOR**: Exploring Enhanced Oil Recovery (EOR) and unconventional reservoirs through new PECs. #### **3. International Expansion** - Subsidiaries: - **Deep International DMCC (UAE)** - **SAAR International FZ-LLC (UAE)** - **Beluga International DMCC (UAE, operating in Mexico)** - **Dolphin Offshore Enterprises (India & Mauritius)** - Active in **Middle East, Africa, and Gulf** with projects in **Egypt, UAE, and Kuwait**. - Participated in **BOO (Build-Own-Operate)** gas compression projects and gas processing equipment supply. #### **4. Backward Integration & Manufacturing** - Through **RAAS Equipment Pvt Ltd**, manufactures **CNG booster compressors** (22 kW & 37 kW) compliant with **PESO** and **PNGRB** norms. - Supports **City Gas Distribution (CGD)** network growth. - Greenfield facility (12,200 sqm) operational since FY21. - **Kandla Energy & Chemicals Ltd (KECL)** acquired for **in-house chemical and fluid supply**, improving margin and supply chain control. --- ### **Financial & Operational Highlights (as of Nov 2025)** | Metric | Value | |-------|--------| | **Order Book** | ₹3,050+ crores (up from ₹2,701 cr in Q1 FY25) | | **EBITDA Margin (Prabha Barge)** | ~60% | | **Debt Position** | Minimal net debt; D/E ratio < 0.5 | | **Credit Rating** | CARE 'A' with positive outlook — **highest in sector** | | **Revenue Model** | Recurring (94%), diversified across segments | | **Bidding Pipeline** | ₹700–750 crores expected to convert in 3–6 months | --- ### **Key Projects & Milestones** - **Rajahmundry PEC Project (ONGC)**: - Operational since **April 2025**; baseline established, production expected to ramp up rapidly. - Part of a broader strategy to enter **vertical integration** in oilfield operations. - **Prabha Barge Revenue Generation**: - **Revenue start: May 2025**; deployed in Mexican waters under long-term lease. - Daily rental rate and high margins underscore offshore potential. - **New Workover & Charter Contracts**: - ₹96.72 crore, 7-year contract for rigs in **Assam & Arunachal Pradesh**. - ₹45 crore workover rig hire order from **Oil India** in **Rajasthan**. - **Joint Ventures for Capability Building**: - **Euro Gas Systems JV**: Access to 2000 HP rig technology. - **Focus Energy JV**: Fast-tracks high-capacity rig bids. --- ### **Leadership & Governance** - **Experienced management** with deep industry knowledge and a focus on execution excellence. - Emphasis on **safety, quality, and sustainability** as core governance pillars. - Distinguished by **prudent capital allocation**, minimal leverage, and strong client relationships.