PLL, a global EPC player in the Energy and Infrastructure sector, has set up a new subsidiary - Punj Lloyd Upstream Limited (PLUL).

PLUL shall initially be engaged in providing Onshore Integrated Drilling Services to exploration and production companies in the domestic oil and gas sector. The drilling requirements under the New Exploration Licensing Policy (NELP) coupled with the high crude oil prices has resulted in a substantial increase in the requirement of Integrated Drilling Services (IDS).

The current fleet of drilling rigs is unable to meet the market requirements throwing up a huge demand supply gap and an attractive business opportunity for Punj Lloyd.

The new subsidiary shall address this business opportunity with the deployment of two onshore drillings rigs by the end of this fiscal and the fleet shall be periodically increased in order that PLUL becomes a significant player in the IDS space.

An initial investment of Rs.44 crores is being made in the equity of PLUL.