South West Pinnacle Exploration wins Rs 158cr contract extension from Reliance Industries

South West Pinnacle Exploration Limited (SWPE), a leading integrated service provider in drilling and exploration, has bolstered its position in India‘s energy sector with a contract extension from Reliance Industries Limited (RIL). This milestone deal, valued at over ₹158 crores, involves coal bed methane (CBM) production drilling in Madhya Pradesh and represents a significant leap for SWPE’s operations in non-conventional energy exploration.

The contract, an extension of an ongoing collaboration, promises to nearly double SWPE’s current operations under RIL, requiring additional rigs, equipment, and manpower. With provisions for three additional six-month extensions, this partnership underscores the potential for substantial long-term revenue growth for South West Pinnacle Exploration while advancing India’s shift towards sustainable energy sources.

A Strategic Milestone in CBM Production

The extension reflects SWPE’s proven track record in CBM production, a niche yet vital segment in India’s energy landscape. According to Vikas Jain, SWPE’s Chairman and Managing Director, this development not only boosts the company’s immediate revenue but also enhances its long-term order book. With a cumulative order value of ₹495 crores across 15 active projects, South West Pinnacle Exploration has achieved unprecedented growth, adding ₹309 crores in new orders during the first nine months of FY 2024-25.

Jain explained that CBM production is a non-conventional energy source with limited competition in India, positioning SWPE as a key player in this domain. He highlighted the role of advanced technology and an experienced team in ensuring the successful execution of large-scale projects.

“This extension almost doubles our revenue from RIL and sets a clear roadmap for sustained growth over the next three years,” Jain stated, emphasizing the importance of innovation and efficiency in maintaining SWPE’s competitive edge.

Confidence in Execution and Technological Expertise

Joint Managing Director Piyush Jain expressed confidence in SWPE’s ability to deliver results, citing the company’s extensive experience and successful execution of Phase 1 of the CBM project. He revealed that the extended operations are expected to begin generating additional revenue from the second quarter of FY 2025-26.

For the first time in SWPE’s history, all its verticals—including CBM production drilling, seismic acquisition, and mineral exploration—will be operating simultaneously. This synchronized effort showcases the company’s ability to manage diverse projects while maintaining high standards of efficiency and quality.

SWPE’s commitment to technological innovation further bolsters its capabilities. The company’s expertise includes advanced methodologies like 2D/3D seismic surveys, passive seismic tomography, and geophysical logging. These techniques enable precise exploration, ensuring optimal resource utilization.

A Legacy of Excellence in Natural Resource Exploration

Since its inception 17 years ago, South West Pinnacle Exploration has completed over 150 projects, covering diverse domains such as coal, ferrous and non-ferrous minerals, oil, and gas. The company has also secured significant international contracts, including a long-term mining project for copper and gold in Oman through its joint venture, Alara Resources LLC.

With the acquisition of a coal block in Jharkhand boasting geological reserves of 84 million tons, SWPE has further strengthened its foothold in India’s energy and mining sectors. The company’s advanced drilling capabilities, backed by a fleet of 36 state-of-the-art rigs, have enabled it to achieve over 2.6 million meters of drilling and comprehensive seismic surveys.

Paving the Way for India’s Energy Transition

The ₹158 crore contract with Reliance Industries signifies more than just a financial boost for SWPE; it represents a step forward in India’s energy transition. By focusing on non-conventional energy sources like CBM, South West Pinnacle Exploration is contributing to a more sustainable and energy-efficient future.

As the demand for cleaner energy grows, SWPE’s leadership in natural resource exploration positions it as a key enabler of India’s energy ambitions. With a robust order book and a track record of excellence, the company is well-prepared to meet the challenges of a rapidly evolving energy landscape.