Aban Offshore + Hindustan Copper’s restructuring

Aban Offshore has announced that letter of award has been received from a leading E&P Company in South Asia for deployment of the new built jack up rig deep driller 4, for a firm period of 12 months with two options to the operator for a period of 6 months each.

The estimated revenues for the firm period of deployment would be approximately US $ 80 million, including mobilization and demobilization. The rig is likely to commence operations by 4th quarter of year 2007.

Reportedly, the ministry of mines had proposed a financial restructuring package worth Rs 637 crore for Hindustan Copper Limited [HCL] revival. The package includes waiver of loan, interest, preference share capital, guarantee fee and reduction of capital.

The combined measures are expected to substantially reduce HCL’s accumulated losses of Rs 723 crore that has eroded its capital base by about 50%, reports suggest.

The financial restructuring package is aimed at helping HCL to mobilise funds from the market for estimated outlay of Rs 1800 crore for modernisation, expansion and development of new mines.

Meanwhile, the state-run copper firm was recently in news for exploring avenues to hedge its risk on the Multi Commodity Exchange (MCX). If successful, HCL would be the first metal producer in the country to hedge on a local commodity exchange