Aban to redeploy two rigs with ONGC

Aban Offshore will redeploy its two rigs with ONGC for another three years for around $138 million (Rs620 crore), which is much lower than their earlier deployment with the state-run oil explorer.

With the three-year contract with ONGC expiring, the offshore services provider had bid for the contract to deploy two rigs again.

In a statement to the BSE on Monday, Aban said, “The company has received firm orders from ONGC for the deployment of jack-up rigs Aban III and Aban IV for a period of three years each. The total value of these firm orders is approximately $138 million.”

In 2007, Aban Offshore had deployed three of its rigs — Aban III, Aban IV and Aban V— with ONGC at peak market rate of $156,600 per day each. The total value of the contract then stood at around Rs2,000 crore.

While the day rates for each of these rigs were not shared, “with a total contract value at $138 million, the day rates work out to $64,000 approximately. This is quite low than the $156,600 day rates offered at the peak level in 2007,” said an analyst from a domestic brokerage firm.

“The new rates are in line with the market rates which have fallen considerably,” said an Aban official, who did not wish to be quoted.