Aban Offshore to acquire two oil and gas blocks in North Sea
Photo Credit: Reuters

Offshore drilling services provider Aban Offshore Ltd said on Tuesday it will acquire a 100% interest in two oil and gas blocks in the UK North Sea, but will subsequently sell half the stake.

The Chennai-based company said in a stock-exchange disclosure a step-down subsidiary has signed a conditional agreement to buy the 100% interest for a non-cash consideration of $75 million (Rs 556 crore).

The consideration shall be set off against amounts due from certain customers for the drilling services provided by the company, it said.

Subsequently, Aban Offshore will sell a 50% interest in these two blocks for $37.5 million in cash to an unrelated party. The buyer will operate the blocks, it said, without elaborating.

Both the transactions are subject to customary closing conditions, including the consent of the UK Oil and Gas Authority.

Chennai-based Aban Offshore provides offshore drilling and production services to oil and gas companies exploration and production companies in domestic and international markets. It claims to be India’s largest private offshore drilling services provider.

The company is also into wind energy production but the segment contributes less than 10% of the overall revenue.

The company’s consolidated revenue fell to Rs 1,466.86 crore for the year through March 2018 from Rs 1,757.92 crore the previous year.

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