Asian Energy Services (AESL) said on Wednesday that it has received a Letter of Award (LoA) worth ₹78.24 crore for 3D seismic data acquisition services from the State-run Oil & Natural Gas Corporation (ONGC).
ONGC had invited bids for the project, in which AESL participated and emerged as the selected bidder. Work on the project will take place near Nardipur village, in Kalol taluka of Gandhinagar district in Gujarat, and is expected to start post-monsoon, the company said.
AESL is the first company in Asia-Pacific and west Asia to implement cable-free real-time seismic data collection technology. It is also the first Indian seismic company to execute seismic operations in India, Indonesia, and Iraq at the same time, it added.
The company entered the upstream oil and gas production (E&P) market, broadening its capabilities across the whole upstream value chain. With the addition of the E&P business vertical, AESL will be able to improve its cash flow visibility and diversify its cash flows beyond its existing seismic, oilfield O&M, and infrastructure services verticals.
AESL Managing Director Kapil Garg said, “Following a period of muted activity on the seismic contract award, I am proud to add this LoA to our portfolio as it signals the commencement of the inflow of seismic services contracts. The majority of work under this LoA will be completed in the current financial year (FY24) and will boost the company’s revenue from seismic services, which was subdued in the previous financial year.”
He added that the company is expecting a few more awards in the coming months for seismic services, which will strengthen the company’s order book.
With this order, AESL now has a healthy order book of around ₹900 crore (including this order) spread across seismic services, operations and maintenance services, and infrastructure services.