DUG Doubles PETRONAS Contract Value with First Purchase Order
DUG Technology has secured its first purchase order under a major multi-year deal with PETRONAS, nearly doubling the contract’s total value to over US$43 million. This milestone signals a significant ramp-up in DUG’s cloud-based geoscience services.
- First-year purchase order valued at US$14.9 million
- Total contract value upgraded from US$23.8 million to at least US$43.3 million
- Contract spans three years with annual values expected above US$14 million
- Includes dedicated compute, storage, and advanced DUG Insight software access
- Partnership with Cegal to deliver managed services under the contract
A Significant Contract Milestone
DUG Technology Ltd has announced receipt of the first purchase order under its recently awarded multi-year SaaS and HPCaaS contract with PETRONAS, marking a pivotal moment for the company. The initial order, covering the first year of a three-year term, is valued at US$14.9 million, including implementation and training fees. This development not only confirms the deal’s commencement but also substantially increases the contract’s total expected value.
Doubling the Deal Value
Originally announced with a total contract value of US$23.8 million, the deal’s scope has expanded significantly. The new expectation is for at least US$43.3 million over three years, reflecting enhanced compute and storage capacity, broader use of DUG’s proprietary Insight software, and dedicated geophysicist support. This upgrade underscores PETRONAS’s growing reliance on DUG’s advanced geoscience computing capabilities to support its subsurface imaging and processing workflows.
Strategic Partnership with Cegal
A notable aspect of the contract is the involvement of Cegal, a Norwegian technology firm specializing in energy sector software and consulting. Cegal will manage a portion of the services, with approximately US$13.2 million payable to them over the contract term. This partnership leverages Cegal’s expertise to ensure seamless delivery of managed services, complementing DUG’s technology offerings.
Technological Edge and Sustainability
DUG’s offering includes access to its full DUG Insight processing and imaging toolkit, featuring elastic multi-parameter full waveform inversion (eMP-FWI) imaging. This technology enables PETRONAS’s technical teams to perform sophisticated subsurface analyses and host third-party applications. Additionally, DUG’s commitment to sustainable computing through energy-efficient immersion cooling systems aligns with broader industry trends toward environmental responsibility.
Looking Ahead
While the formal contract execution is pending, the receipt of the purchase order provides strong validation of the deal’s scale and DUG’s operational readiness. The company’s global footprint and continuous innovation position it well to capitalize on this expanded engagement with PETRONAS and potentially attract further large-scale contracts in the energy sector.
Bottom Line?
DUG’s expanded PETRONAS contract marks a major revenue inflection point, but formal contract finalisation remains a key next step.
Questions in the middle?
- Will the formal contract execution confirm the anticipated annual values for years two and three?
- How will DUG scale its infrastructure and partnerships to meet the increased service demands?
- What impact will this deal have on DUG’s competitive positioning in the global geoscience computing market?
