United Drilling Tools Ltd deploys premium connection casing pipes for Oil India Ltd

United Drilling Tools Ltd. (UDTL) (BSE - 522014, NSE - UNIDT), a leading manufacturer and prominent supplier in India of specialized, high-technology equipment for the oil and gas sector, today announced that it has successfully supplied and deployed its "premium connection" casing pipes for Oil India Limited (OIL). The successful field performance marks UDTL's entry into the premium casing and tubing segment, a high-value part of the oilfield equipment market that has, until now, been served largely by a few global and domestic suppliers.

Under a Development order from Oil India Limited, UDTL has supplied 7-inch premium production casing totalling 5,000 metres which have been successfully installed and put to use in a gas well at Assam. Oil India is expected to issue a formal confirmation of the successful utilisation of the Company's premium connection technology at its fields.

A breakthrough into premium connections

Most oil and gas wells use casing pipes joined by standard, industry-grade threads certified to American Petroleum Institute (API) standards, a segment in which UDTL has been an established supplier for decades. Premium connections are a more advanced type metal-to-metal seal to remain completely leak-proof and gas-tight even in the most demanding wells, those with very high pressure, high temperature or corrosive conditions, and in deep or highly deviated wells. This successful deployment establishes UDTL as a proven Indian manufacturer of premium connections, moving the company beyond its traditional API-graded product range.

A large and growing market

India's premium casing and tubing market is currently valued at approximately ₹2,600 crore, with a regular annual requirement of around 1.2 lakh tonnes. About half of this demand comes from national oil companies and the balance from private explorers and oilfield service providers. Growing deepwater exploration and increasingly complex drilling conditions continue to push demand toward premium, gas-tight connections. As a domestic manufacturer, UDTL is well-placed to meet this need in line with the Government of India's "Make in India" push for indigenous energy equipment and reduced import dependence.

New doors open - with both national and private oil companies

The successful use of UDTL's premium connections pipe and tubing in Oil India wells will open this huge market of INR 2,600 crore to UDTL which will significantly enhance the Company's revenue and profitability by enabling it to secure a meaningful share of this large market. Having proven its capability with one national oil company, UDTL intends to pursue approvals and tenders with Oil and Natural Gas Corporation (ONGC) as well. The milestone also paves the way for India's private exploration majors, including Vedanta (Cairn Oil & Gas), Reliance Industries, Adani and Welspun Exploration as well as international oilfield service providers operating in the country.

Mr. Jyoti Kumar Singh, General Manager - Sales and Marketing, United Drilling Tools Limited said "This is a defining milestone for United Drilling Tools. We are proud that our premium connections have performed successfully in the field at Oil India, establishing us as a credible Indian manufacturer in a segment long served by a handful of global suppliers. This achievement opens a substantial new growth avenue for the company, across both national and private oil companies and, over the coming years, we believe it has the potential to add a scale of business comparable to our existing operations, while supporting the nation's goal of self-reliance in critical energy infrastructure."

Shares of United Drilling Tools Limited was last trading in BSE at Rs. 228.35 as compared to the previous close of Rs. 232.75. The total number of shares traded during the day was 781 in over 34 trades.

The stock hit an intraday high of Rs. 232.80 and intraday low of 223.65. The net turnover during the day was Rs. 179852.00.

Source : Equity Bulls

Keywords

UnitedDrillingTools INE961D01019 ConnectionCasingPipes OildIndia