Aban Offshore may get contracts for more offshore rigs

[B. Karthick]

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