Software firm Servelec said it has won a contract with a "major UK gas supplier" to provide a remote operations solution for a gas platform in the North Sea.
Sheffield-based Servelec said the project is expected to contribute towards revenues in the current financial year.
Following installation on the first platform, scheduled to take place by May next year, there are options to extend the system to cover additional platforms.
Servelec's CEO Alan Stubbs said: "As a business focused on helping our customers to reduce their Opex whilst extending the life of ageing assets, we are proud to be working with our customer on this game-changing project. The remote operations and monitoring system provided by Servelec will extend the operational life and viability of the platform for years to come.
"This project marks a significant achievement for Servelec and further strengthens the group's position with regards to winning additional contracts on this customer's other assets as well as with other OEMs; many of whom we are already in discussion with about future opportunities."
Analyst Julian Yates at Investec said: "Servelec has been in negotiations for a number of years with a major UK gas supplier to install remote Control Systems on its offshore rigs.
"The delay to this contact earlier in the year was one of the factors behind our June 2016 forecast downgrade. It is pleasing to see that negotiations have now progressed to a stage where work has started and is now due to be completed by May 2017 for one platform. We expect the deal to be worth a decent six figures of revenue."
He said that the gas supplier is understood to be planning to install remote operation solutions on a number of its other off-shore platforms and he sees it as highly likely the Controls System installation will go to Servelec.
"At current stock price, Servelec is one of our key sector picks levels. We see it as materially undervalued," he added.
In September, Servele cheered shareholders with the news it had won a place on the National Grid Framework Agreement.
The contract was welcomed by investors following a profits warning in June, which wiped £71m off Servelec's value.