This Article is From Jul 08, 2014

Aban Offshore Surges on Hopes of Higher Rig Rates

Shares of Aban Offshore surged as much as 9.8 per cent to Rs 940, 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

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

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

An Aban spokesman was not immediately reachable.

As of 1:13 p.m., shares in Aban Offshore Ltd. were trading at Rs 915.90 apiece on the BSE, up 7.20 per cent from the previous close.

Copyright: Thomson Reuters 2014