United Drilling Tools spurts over 5.5% on plans to expose the company to Gulf Market

11 Mar 2022 , 02:15 PM

United Drilling Tools Ltd. has appointed Marketing Associates and Representatives to promote its product portfolio for oil exploration and completion equipments in Kuwait & United Arab Emirates (UAE).

The company said in a filing that this representation will open opportunities for UDTL to expand it market base in

1. Kuwait, where major state E&P company KOC, Kuwait Oil Company has a strong presence. We undertand that about 2000 no of wells are underplanning for next 5 years & KOC is drilling almost 400 new wells every year.

2. United Arab Emirates (UAE): The Abu Dhabi National Oil Company or ADNOC is the state-owned oil company of the United Arab Emirates. It is the world’s 12th largest oil company by production. As of 2021, the company has an oil production capacity exceeding 4 million bpd with plans to increase to 5 million bpd by 2030. ADNOC is the largest drilling company in the Middle East, and has drilled more than 6,200 wells. Adnoc has total 99 number of operational rigs & total well delivered is 10,000. The target is for another 1000 wells by 2030.

At around 2.18 pm, United Drilling Tools Ltd was trading at Rs505.80 per piece up by Rs26.7 or 5.57% from its previous closing of Rs479.10 per piece on the BSE. The scrip opened at Rs481 and has touched a high and low of Rs514.50 and Rs480.95 respectively.

“The market size for our range of products is about 250 crore per annum in Kuwait & 200 crore per annum in UAE. Thus, we have a strong chance of increasing our market share & profitability from these markets.

We are also pleased to inform you that in 2021, we have registered ourself with major global service providers such as Halliburton, Schlumberger, Baker Hughes. This registration has facilitated us to get enquiries across their global offices. Within short span of our registration, we have received some good number of development orders & executed. More enquiries from these global companies are in pipeline which will result in good size of order book for us,” company said in a filing on Friday.