ONGC makes strategic investment in WellRx

The Oil and Natural Gas Corporation (ONGC) has made a strategic investment in WellRx, significantly valuing the next-gen technologies and platforms they developed.

According to the company, This is the largest-ever investment made by ONGC, which will help WellRx towards expansion and invest more in R&D.

WellRx was conceptualized by technocrats like Rahul Gupta, Deepak Diwakar, Sudhir Sharawat and Shaily Nimodia, with an extensive background in the oilfield services industry.

In an interview with Startupstorymedia, CEO Rahul Gupta revealed the entire scenario of the oil and gas industry, stating: A paradigm shift has been taking place in the oil and gas industry.

Future oil prices are predicted to be low, which will put a strain on E&P Operators’ ability to invest and spend money. Cost Control will be clearly in focus. When it comes to downhole equipment and related surface equipment, the oil and gas business has some of the highest technological levels.

Right from the inception, WellRx kept strict alignment with the objective on helping E&P operators by reducing the upfront capital expenditure on field development as well as expenditure throughout the life of the well. As an example, WellRx has developed state-of-art technologies for oil and gas wells rejuvenation i.e. to bring shut wells back to the production and that too at a fraction of cost of conventional methods which includes expensive workovers.

Similarly, Production Enhancement from existing fields is also one of the technology sectors where WellRx has focused heavily. WellRx is also working towards developing data driven services (Machine Learning/Production Optimization) and these products/platforms will be rolled out soon.

WellRx said it is targeting to have 25 patents by 2025 and is currently well on track to achieve that. All patented technologies will have direct field applications for the economic benefit of E&P operators, it said.

The ultimate objective of WellRx is to particularly support the oil and gas industry in India. Why? India currently imports $150 Billion+ of oil and gas and is the biggest drain on the country’s forex.

Additionally, most of the oilfield technology is also imported. The company aspire to help the country in reducing these import dependencies, and its technology development is directly aimed at it. If the imports are reduced, then with this saved money, the government of India could fund much-needed welfare programmes. He further contends that domestic expenditure is far more important and advantageous than paying for imported technologies.

Rahul Gupta says, “During the COVID, even though there was zero business, we did not fire a single person and everyone’s payroll was straight out of our pockets. But we knew, the tide would turn and everyone held on to the team. Our respective families and the founding group were the support system throughout.” To a question on advice for aspiring entrepreneurs, he said, “From a personal experience from 3 years in the startup which might not be for everyone but all I can say is, do not lose nerve. If you have a solid idea and a good team eventually everything will fall in line. Just keep working on it!”

He added that the ongoing funding round of WellRx will have participation from other investors as well and investment from them will be concluded within Q4, FY 22-23.

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