Aban Offshore deploys 2 jack-up rigs

Aban Offshore on Thursday said it has won a contract for deployment of its jack-up rig Deep Driller 1 for a period of one year and two optional periods of 6 months each.

The company estimates revenues of about $41 million (around Rs 185 crore), which works out to roughly $1,12,000 per day.

The contract is from an exploration and production firm for offshore India, it said in a statement, without naming the E&P firm.
DNA had earlier reported that it will deploy its Deep Driller 1 with Gujarat State Petroleum Corporation Ltd, quoting a source close to the development.

The company also signed a contract to deploy its jack-up rig Aban VII in offshore Qatar for a six-week period.

The firm estimates revenues of $2.5 million (about 110 million) from this deployment, or about $60,000 per day, which is extremely modest.

Typically, the Middle East commands a premium, with the going rate around $1,30,000 per day.

A company official said, “Aban VII is for a very short term contract and it will not be going for drilling work but as an accommodation unit, so a lower day rate.” The deployments of the rigs are likely to begin in the second quarter of calendar 2010.  Aban still has two idle rigs — DD 6 and 8.

According to Kunal Lakhan, analyst with broking house K R Choksey Shares and Securities firm, the deployment of the rigs is positive for the company as it will help in increasing its cash flow and reducing debt. As of September 2009, the company had debt of Rs 16,000 crore on its books.