Aban Offshore to sell four rigs to ADES Saudi


The sale and purchase agreement between the parties was concluded on Wednesday April 13, 2022.

Aban Offshore’s Board of Directors on March 23, 2022 approved the sale of the “Deep Driller 2”, “Deep Driller 4”, “Deep Driller 5”, “Deep Driller 6” and “Deep Driller 8” rigs . Each platform is owned by a separate subsidiary of the company.

Following board approval, Aban Offshore on Wednesday, April 13, 2022 entered into an agreement with ADES Saudi to sell four rigs, namely “Deep Driller 2”, “Deep Driller 4”, “Deep Driller 5″ and “Deep Driller 6”.



Aban Offshore will sell the “Deep Driller 2” and “Deep Driller 4” rigs for Rs 198.12 crore each.

The “Deep Driller 2” rig contributed around Rs 4.11 crore or 0.7% of Aban Offshore’s consolidated revenue in 2021-22. “Deep Driller 4” contributed about Rs 10.70 crore or 1.83% to consolidated revenue.

The “Deep Driller 5” and “Deep Driller 6” rigs will be sold for Rs 205.74 crore each.

The “Deep Driller 6” rig contributed approximately Rs 55.63 crore or 9.52% of Aban Offshore’s consolidated revenue in 2021-22. “Deep Driller 5” was out of contract for the past fiscal year.

The sale is expected to close by May 31, 2022, the company said in a statement Thursday, April 14, 2022.

The sale is subject to shareholder approval which is sought through a mail-in voting process. The result of the vote will be communicated on April 26, 2022.

Aban Offshore owns and operates several offshore drilling rigs, drillships and a floating production facility, “Tahara”. It is engaged in exploration services, drilling services, hydrocarbon production and staffing and management.

On a consolidated basis, Aban Offshore recorded a net loss of Rs 327.21 crore in Q3 December 2021 compared to a net loss of Rs 281.52 crore in Q3 December 2020. Net sales decreased by 36.28% to Rs 136 .58 crore in Q3 Dec 2021 compared to Q3 Dec 2020.

Shares of Aban Offshore rose 0.36% to Rs 55.10 on Wednesday. The national stock market is closed today due to Ambedkar Jayanti and Mahavir Jayanti.

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

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