Aban Offshore slips 3% on fears of contract loss

The stock ended at Rs 1,529, down around 3% from the previous close. The counter witnessed trades of 60,742 shares.
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(Updated at 1051hrs)

Aban Offshore has slipped in early trades on fears of loosing its drill ship contract.

The stock opened at Rs 1,565 and touched a high of Rs 1,572. However , it slipped 3% to a low of Rs 1,526. The stock is now down 2% at Rs 1,545. However, it has jumped 45% in the past month. The counter has clocked a volume of 166,476 shares on the BSE so far.

The Chennai-based drilling firm stands to lose a contract for its drill ship ‘Aban Abraham’ for deployment at an offshore field in Ghana, Africa, for developing the Jubilee Field. The 33-year-old drill ship was contracted to Kosmos Energy for the field’s development from September 1 to October 21 at a rate of about Rs 14.6 crore a day. The loss of the contract would make a dent of about Rs 744 crore in the current financial year’s revenues.