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Published: Mar 13, 2023
Updated: Mar 13, 2023

Seamec's Shares Skyrocket by 32% in Two Days Following Contract With ONGC

Seamec, a subsidiary of HAL Offshore Limited, has entered into a subcontract with its consortium partner in Pipeline Replacement Project (PRPVII) for subsea installation works of the state-owned oil exploration & production company, Oil and Natural Gas Corporation (ONGC), on unit rate basis. As a result, Seamec's shares have skyrocketed by 32% in the past two trading days.

Contract Details

The approximate total value of the contract, at the maximum indicated quantity of scope of work, shall be approximately Rs 80.78 crore, exclusive of GST. The work scope is to be executed over two working seasons, until May 2024.

Background of HAL Offshore Limited

HAL Offshore Limited is a leading, end-to-end solutions provider of underwater services and provides EPC services to the Indian Oil and Gas industry. The company is also engaged in Charter hire of Diving Support Vessels in Mumbai High areas, undertaking diving, fire- fighting, material logistic activities, etc. HAL has developed a diversified portfolio for undertaking Turnkey projects involving sub-sea and marine services as an EPC Contractor.

India's Oil and Gas Industry

India continues to be the third-largest consumer of oil in the world. The government has an ambitious plan to enhance exploration of oil and gas to 0.5 million sq. km by 2025 and to one million sq. km. by 2030 with a view to increasing domestic output. Activities forecasted in the oil and gas sectors will engage the Company's Diving Support Vessels. The development and replacement of pipelines, ONGC contracts, and IMR jobs are the core areas where SEAMEC has dominance, the company said.

Contract with ONGC -A positive outlook for future

Seamec's contract with ONGC has brought a positive outlook for the company's future. With the Indian government's focus on increasing domestic output, the oil and gas industry is expected to grow, providing ample opportunities for Seamec to expand its operations. The surge in the company's share price is an indication of investor confidence in Seamec's ability to capitalize on these opportunities