Pratim Ranjan Bose

Kolkata. Sept. 6

Aban Offshore may secure contracts for two more offshore rigs from a French company for deployment in South America, according to industry sources.

While company officials did not respond to queries, industry sources told Business Line that the company was facing expiry of contracts for three rigs Tahara ($85,000 a day), Aban Abraham ($325,000 a day), DD-VIII ($200,000 a day) in the next two months.

Of the three, Aban Abraham is currently deployed with Cosmos Energy at Ghana at a day rate of $325,000 and DD-VIII is deployed with Hardy Oil at $210,000 a day. Tahara is earning $85,000 a day.

Sources said that the mobilisation would not be over before January 2010. Aban currently has one rig on deployment in the region with PVVSA at a day rate of $ 375,000.

Long-term deals

In a stock market announcement, the company disclosed securing long-term contracts for four rigs from the Deep Driller (DD) series to mid-East (three rigs) and Latin America (one). Sources said that of the four, DD-II, DD-IV and DD-V were deployed to National Iranian Oil Company in Iran at a day rate of $165,000.

The rest is contracted at $125,000 a day. All the rigs are expected to be mobilised in December.

Reports suggest that in addition the company recently secured orders for two more rigs Aban-VII and DD-VI for deployment in Iran.

Both the rigs were idle and were awaiting contracts.

Meanwhile, sources in merchant banking community said that activity is on with regard to the slated private placement of shares of Aban Offshore.

While details in this regard are not known, sources said that the merchant bankers have pegged the fair value of the share at Rs 1,400-1,500 and the placement may be over in next two months.

Related Stories:
Order cancellation may buffet Aban Offshore
Asset impairment dents Aban’s profitability

(This article was published in the Business Line print edition dated September 7, 2009)
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