Aban Offshore's reinsurer settles claim, shares soar

Written by Reuters | Mumbai | Updated: Jul 28 2010, 17:38pm hrs
India's Aban Offshore said on Wednesday reinsurers have settled a claim worth $235 million for its semi-submersible rig, which sank in the Caribbean sea, sending it shares up as much as 8.5 percent.

Approximately 97 percent of the claim amount has been received and the balance is likely to be received shortly, it said in a statement to the Bombay Stock Exchange.

The company had lost its gas exploration rig, Aban Pearl, to the Carribean sea on May 13, prompting analysts to downgrade the stock saying the accident will hurt the offshore services provider's revenue.

The Aban Pearl rig was built in 1977 and last changed hands in 2007 for around $211 million. The semisubmersible rig was drilling some of the 16 gas wells in the Mariscal Sucre natural gas project.

Shares in the firm have since lost about 19 percent of their value. At 12.12 p.m., shares were up 7.56 percent at 887.35 rupees in a flat Mumbai market.