Aban cuts dependency on Iran to avoid further sanction risks

Cuts rigs deployed in Iran from 7 to 1

Aban Offshore has pulled almost all its rigs from Iran due to continuing uncertainties. S Srinivasan, senior vice-president, Aban Offshore, said that total receivable was about $296 million. Major portion of it was from Iran.
 

“I think, I can say about 90 per cent is from Iran,” he told analysts during a conference call. Payments were delayed due to sanctions

He said the situation was improving but the amounts are large. As of now, Aban has only one rig working in Iran. At the peak, the company had about seven rigs there. The company gradually reduced it to mitigate against further sanction risks.

“As far as receivables are concerned, basically, we’ll have to collect fees. As of now, it is very high. So, we expect it to be paid over a period of time,” he added.

Srinivasan said, at present, Iran does not have money. Once the oil price goes up and they are able to generate surplus, then probably things would improve, he said. He ruled out any possibility of deploying more rigs, since the country didn’t have major programmes and, now, there is a lot of competition there. The rates are expected to be rock bottom and the company would not make much profit.

Aban pulled its DD6 rig out of Iran and placed it with Dubai Petroleum, a government oil company in Dubai. Aban is looking at contracts for at least two or three more rigs, but it would be short-term, each for up to 100 days.

Among national oil companies who give long-term charters, Aban was able to get a five-year charter, amidst very stiff competition, in Shell Brunei.