Aban Offshore shines on receiving contract from ONGC

Shares of Aban Offshore Ltd. jumped nearly 5 per cent after the company bagged a 3-year contract from the PSU company ONGC.

In a press release on Thursday, the Chennai-based offshore drilling contractor stated that it has received a Letter of Award for deployment of jack-up rig ABAN II from ONGC for a firm period of three years. The company further added that deployment is expected to commence during the second quarter of the calendar year 2020.

This month, Central Bank of India, which is one of the lenders of Aban Offshore, withdrew an insolvency application against the company. The National Company Law Tribunal (NCLT) had rejected the application and gave the lender the freedom to approach it later.

Aban Offshore is India's largest offshore drilling services provider to oil companies, particularly for ONGC. The company has now forayed into international waters as one of its five rigs is offering services to an Iranian oil company.

On Friday, the shares of Aban Offshore Ltd. closed at Rs.25.35, up by 1.40 per cent from its previous close of Rs. 25.00. The stock had opened at Rs. 26.25 in BSE. It hit an intraday high of Rs. 26.25 and intraday low of 25.20. Its 52-week high stands at Rs. 88.00 and 52-week low stands at Rs. 21.55 in BSE.