Deep Industries announced that it has entered into a joint venture agreement with Euro Gas Systems (EGS) to supply oil field equipment to the oil and gas industry. “We would like to inform you that Deep Industries Limited have entered into a joint venture arrangement to join hands for the purpose of submitting bid/tender with qualification for carrying out business for supplying oil field equipment to the oil and gas Industry in India,” the company said in a regulatory filing.
Per the terms of the agreement, EGS has acquired a 26 per cent equity stake of Deep Onshore Drilling Services Private Limited (DODSPL), the subsidiary company of Deep Industries which will hold the balance 74 per cent stake. It further stated that the management of the joint venture shall be carried out by the directors as nominated/appointed by Deep Industries. “In the event of resignation, retirement of office by any directors of the joint venture company, Deep Industries shall be entitled to nominate/appoint another director in place of such director,” it said.
Earlier, Deep Industries had received a Letter of Award from Oil and Natural Gas Corporation Limited (ONGC) for charter hiring of one 90 MT mobile drilling rig with Integrated mud services and METP with Manpower for CBM Asset, Bokaro. The total estimated value of the award is approximately Rs 130 crore and the order is to be executed in three years from the commencement date of contract.