Aban Offshore’s wholly owned step-down subsidiary has entered into a conditional sale and purchase agreement to acquire 100% interest in a United Kingdom (UK) Continental Shelf Production License comprising of 100% interest in two blocks in UK North Sea, for a non-cash consideration of $75 million. The consideration shall be set-off against amounts due from certain customers to another wholly owned step-down subsidiary of the company for drilling services provided.
The wholly owned step-down subsidiary has also entered into a conditional sale and purchase agreement to sell a 50% interest in blocks immediately upon completion of the acquisition, for a cash consideration of $37.5 million to an unrelated party. Both the acquisition and sale are subject to customary closing conditions including the written consent of the UK Oil and Gas Authority.
Upon completion of the transactions, the wholly owned step-down subsidiary of the company and the counterparty purchasing 50% stake from the wholly owned stepdown subsidiary, will each own 50% interest in the block, while the counterparty purchasing 50% stake will be the operator.
Aban Offshore is engaged in the business of providing offshore drilling and production services. The Company’s operating segments include offshore oil drilling and production services, and wind power generation (Wind energy). It is also engaged in the ownership and operation of wind turbines for generation of wind power in India.