Mumbai, July 7: South West Pinnacle Exploration Ltd (SWPEL) has secured an extension of its coal bed methane (CBM) production contract from Reliance Industries Ltd (RIL), with the order valued at more than ₹166.82 crore.
The contract extension covers multi-lateral production hole drilling for coal bed methane in Madhya Pradesh and has an estimated execution period of 15 months, the company said in a press release.
SWPEL said the contract also includes a provision for a further extension, which could increase the overall contract value.
The company has previously completed two CBM drilling projects for Reliance Industries and is currently executing production services under the existing contract.
Following the latest order, South West Pinnacle’s order book has crossed ₹760 crore, providing revenue visibility over the next two to three years, the company said.
Commenting on the development, Vikas Jain, Chairman and Managing Director of South West Pinnacle Exploration, said the extension from Reliance Industries was a significant milestone given the size of the contract and the longstanding relationship between the two companies.
He said the project would not require deployment of additional assets, enabling the company to execute the contract using its existing infrastructure. He added that coal bed methane is an important non-conventional energy source that supports India’s efforts to strengthen domestic energy production.
Piyush Jain, Joint Managing Director, said the contract extension would ensure continuity of operations without any interruption arising from remobilisation of equipment or manpower. He added that the project is expected to begin contributing to the company’s revenue from the second quarter of FY27.
South West Pinnacle Exploration provides drilling and exploration services across coal, minerals, conventional and unconventional oil and gas, and groundwater projects. The company also undertakes geophysical surveys and seismic exploration and has operations across India as well as joint ventures in Oman focused on mining and exploration activities.