DUG’s $23.8M PETRONAS Contract Hinges on Final Signing and Execution Risks

DUG Secures Strategic Contract with PETRONAS

DUG Technology Ltd, an Australian leader in geoscientific computing, has announced a significant multi-year agreement with PETRONAS Digital, the technology arm of Malaysia's national energy company. The letter of award outlines a partnership where DUG will deliver Software-as-a-Service (SaaS) and High Performance Computing as-a-Service (HPCaaS) solutions, underpinning PETRONAS’s advanced subsurface imaging and processing capabilities.

Scope and Scale of the Agreement

The contract, initially spanning three years with an option to extend for two more, carries a minimum total contract value of US$23.8 million. DUG will provide dedicated compute and storage resources alongside access to its proprietary DUG Insight software suite, which features cutting-edge elastic multi-parameter full waveform inversion (eMP-FWI) imaging technology. This software enables PETRONAS’s technical teams to perform sophisticated seismic data analysis and host third-party applications, enhancing their exploration and production decision-making.

Collaborative Delivery with Cegal

To support the managed services component of the contract, DUG has partnered with Cegal, a Norwegian technology firm specializing in energy sector software and consulting. Cegal will be responsible for delivering the operational aspects of the service, ensuring seamless integration and support for PETRONAS’s workflows. Of the total contract value, US$5.6 million is allocated to Cegal, reflecting the collaborative nature of this partnership.

Timeline and Future Outlook

The project is expected to be fully commissioned by the first quarter of 2026, with interim deliverables scheduled throughout 2025. The formal contract signing is anticipated by the end of September 2025, which will solidify the terms and potentially open avenues for scope expansion. This deal not only reinforces DUG’s position in the competitive energy technology market but also highlights the growing demand for cloud-based high-performance computing solutions in the oil and gas sector.

Strategic Implications

For DUG, this contract represents a material revenue opportunity and a validation of its innovative SaaS and HPCaaS offerings. The partnership with a major national energy company like PETRONAS signals confidence in DUG’s technology and service delivery capabilities. It also underscores the increasing importance of advanced computing and imaging technologies in optimizing energy exploration and production amid evolving industry challenges.