United Drilling Tools has entered India's premium oilfield casing and tubing segment by successfully supplying and deploying 5,000 metres of 7-inch premium production casing to Oil India Ltd. The deployment took place in a gas well in Assam under a development order, marking the company's shift from standard API-grade products to advanced metal-to-metal seal technology designed for high-pressure and corrosive environments. This move positions the company to capture a share of the domestic market, which is valued at approximately ₹2,600 crore and has an annual requirement of around 1.2 lakh tonnes.

Market Entry and Supply Details

The successful delivery to Oil India Ltd represents a key milestone for United Drilling Tools in establishing its presence in the high-end oilfield casing and tubing space. The following table outlines the key details of this supply:

Strategic Targeting of Oil Companies

Following this validation with a national oil company, United Drilling Tools plans to pursue approvals and tenders with Oil and Natural Gas Corporation (ONGC). The company is also targeting private exploration majors such as Vedanta (Cairn Oil & Gas), Reliance Industries, Adani, and Welspun Exploration, as well as international oilfield service providers operating in India. This strategy aligns with the Government of India's "Make in India" initiative to reduce import dependence in the energy sector.

Significance of Premium Casing in Oilfield Operations

Premium connections are a more advanced type of casing that uses metal-to-metal seals to remain leak-proof and gas-tight in demanding conditions, such as high pressure, high temperature, or corrosive environments. While the company has been an established supplier of standard API-certified threads for decades, this successful deployment establishes it as a proven manufacturer of premium connections capable of meeting complex operational requirements.

Outlook

The management believes this entry has the potential to add a scale of business comparable to existing operations over the coming years. By securing a meaningful share of this large market, the company aims to enhance its revenue and profitability while supporting the nation's goal of self-reliance in critical energy infrastructure.

United Drilling Tools Ltd has secured a repeat domestic order worth ₹3.89 Cr from Vedanta Limited for the supply of critical oilfield equipment. The contract involves the provision of tubing, pup joints, and crossovers, and is to be executed within a period of 24 weeks. This order follows the successful execution of an earlier contract for the same category of products, reflecting Vedanta Limited's continued confidence in the company's manufacturing capabilities and product quality.

The disclosure was made to the exchanges pursuant to Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company confirmed that the promoter, promoter group, or group companies have no interest in the entity awarding the order, and the transaction is not a related party transaction.

Order Details