Chennai, Sep 16 (IANS) City-based oil drilling services company Aban Offshore plans to pay off part of its $3-billion debt after its shareholders Wednesday gave it the go-ahead to raise $1 billion through global depository receipts (GDRs) and qualified institutional placements (QIP).
“Shareholders passed an enabling resolution to raise $400 million through the issue of GDRs and Rs.2,500 crore (around $515 million) through QIP,” Aban managing director Reji Abraham told reporters here.

“We are also negotiating with banks to pay off the FCCB (foreign currency convertible bonds) of about $140 million that is maturing this year,” Abraham said on the sidelines of the company’s annual general meeting Tuesday.

Aban’s secured and unsecured debt stood at around Rs.16,600 crore at the end of last fiscal.

However, Abraham said the company was confident of squaring off its dues as the market was “looking up”.

“Crude prices are stabilising at $70 a barrel. We expanded when prices had shot up to touch $140 a barrel. With most of our 20 rigs aged between 2-3 years, prospects of getting long-term contracts are bright as our competition cancelled orders for rigs soon after the market collapsed.”

Earlier, addressing shareholders, Abraham said well operators had not taken on lease the company’s rigs in recent months as crude prices had fallen to $30 a barrel.

“That is why many of our rigs became idle. With the markets looking up, prospects for our rigs are better as operators prefer new rigs for drilling.”

Abraham said 17 of the company’s 20 rigs have been leased out. Two of these - Aban Abraham and Aban Pearl - have been contracted out at a daily rental of $325,000 and $285,000.