Shares in Aban Offshore surge on hopes of higher rig rates

Reuters Market Eye - Shares of Aban Offshore surge as much as 9.8 percent to 940 rupees, their highest level since May 14, 2010, on hopes the country's largest offshore drilling company may enjoy higher rig rates in the coming quarters, dealers say.

"ONGC has okayed an expenditure sanction of an additional $501.95 million (equivalent to 3,085.54 crore rupees) for hiring of five more offshore jack-up rigs for a period of three years," according to oil and gas industry website Indianpetro.com.

The effective rig rate based on the Indianpetro news article works out to approximately $91,680 per day, Reuters calculation shows.

 

Aban lists Oil and Natural Gas Corporation and its unit ONGC Videsh [ONGCVD.UL] among its marquee clients, a presentation by the company in May 2014 on its website shows.

An Aban spokesman was not immediately reachable.

Aban shares up 6.9 percent at 915 rupees as of 1:27 p.m.

(Reporting by Abhishek Vishnoi)