Aban Offshore inks leasing pact with Husky Oil, stock slips 10%

Aban Offshore inks leasing pact with Husky Oil, stock slips 10%Oilfield services firm Aban Offshore has informed that it has entered into an agreement with Husky Oil for leasing its jack up rig 'Deep Driller 5' offshore for drilling operation in China. .

According to official sources, the three-month contract would yield estimated revenue of $38.70 million (Rs 178 crore), for Aban Offshore, Subject to the fulfillment of conditions.

The deployment is to commence in direct continuation of its present contract, which is anticipated in the first quarter of 2009.

In a separate release, Venture Drilling AS, a firm in which a subsidiary of Aban with 50% shareholding, has signed 18-month contract worth $271 million with Maersk Oil Angola for a semi submersible deep venture. The contract is likely to commence in July 2009.

Parag Parikh Financial Advisory Services has maintained its buy rating on Aban Offshore with a target of Rs 3278 in its latest research report.

As per his view, the global offshore drilling industry fundamentals are still robust, therefore he considers 'Aban Offshore' the best pick among domestic players.

The scrip ended the week at Rs 2099, down 10% compared to its previous close of Rs 2323.