- 01Permian deal: up to $20m over 12 months; no minimum.
- 02FY27 revenue expected: ~$14m, order-dependent.
- 03Prior deals: $8m committed; options could lift to $12m.
SciDev Limited (ASX: SDV) has won a bulk completion chemistry supply contract in the Permian Basin that could generate up to $20 million over 12 months, depending on customer orders.
The award covers a hydraulic fracturing crew operated by an unnamed major North American oil and gas producer in the Delaware Basin, the western part of the Permian.
Based on anticipated volumes, SciDev expects about $14m of that potential revenue in financial year 2027, although the arrangement has no minimum purchase commitment.
SciDev also sees scope to expand supply to additional crews and introduce more products from its specialty chemistry range as the relationship develops.
The latest award follows three separate chemistry contracts announced on late last month with approximately $8m in committed value across mining, utilities, and infrastructure customers.
Permian Growth Prioritised
The Energy Services contract expands an established relationship with the producer and supports SciDev’s strategy of prioritising growth in the Permian Basin.
Its field chemistry team will work alongside the customer’s crew, providing bulk completion chemicals and dedicated on-site technical assistance during fracturing operations.
At the expected order levels, the contract would add approximately $3m to revenue from this customer compared with FY26, with purchases and their timing at the customer’s discretion.
"The Permian is the largest oil-producing basin in the US and a strategic growth priority for SciDev,” chief executive officer Todd Scott said.
“This award strengthens our position there and gives us a clear path to grow with this customer, through additional crews and greater volumes of our specialty chemistry portfolio.”
Three Additional Contracts Won
The earlier awards cover MaxiFlox chemistry supplies for three customers following competitive tenders, with initial contract terms spanning approximately one to three years.
A Hunter Valley coal operation awarded a two-year agreement for flocculant and coagulant chemistry tailored to its operating conditions.
A major municipal water and wastewater provider agreed to an initial three-year supply term with extension options, while a national infrastructure project developer contracted for up to 18 months.
Those contracts carry potential extensions worth a further $4m, taking their possible combined value to about $12m if customers exercise every option.
Unlike the Permian award, the initial $8m from these contracts is committed, while the extensions remain discretionary and are not guaranteed.
Building Recurring Revenue Base
SciDev expects about $5m of revenue from the three MaxiFlox contracts in FY27, including approximately $3m incremental to FY26, with the balance spread across later contract periods.
The awards combine its chemistry with OptiFlox automated dose-control technology and on-site technical services, reflecting an approach that integrates products with operational support.
Alongside a $6m Newmont Boddington contract announced in June, the three October agreements took new chemistry contract awards during calendar 2026 to approximately $14m, before the latest Permian arrangement.
Recurring revenue accounted for 38% of total revenue in FY26, up from 30% the previous year, as SciDev builds its contracted customer base.
The expansion is unfolding as the Rum Jungle project approaches completion in the first half of FY27, giving the business a growing portfolio of chemistry supply arrangements.
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