Aban Offshore

Aban Offshore (formerly Aban Loyd Chiles Offshore Ltd.) is an Indian multinational offshore drilling services provider headquartered in Chennai. Its services are mainly used by oil companies, especially for ONGC. The company listed on the Bombay Stock Exchange.^[1][2][3]

Aban Offshore Ltd.

Formerly	Aban Loyd Chiles Offshore Ltd. (1986–2006)
Company type	Public company
Traded as	BSE: 523204 NSE: ABAN
Industry	Oilfield services
Founded	1986; 39 years ago (1986)
Founder	M.A. Abraham
Headquarters	Chennai, Tamil Nadu, India
Key people	Reji Abraham (Managing Director)
Services	Drilling
Revenue	₹1,326.62 crore (US$160 million) (2021)
Operating income	₹−886.52 crore (US$−100 million) (2021)
Net income	₹−1,972.53 crore (US$−230 million) (2021)
Total assets	₹4,619.29 crore (US$550 million) (2021)
Total equity	₹−16,822.76 crore (US$−2.0 billion) (2021)
Number of employees	1,001-5,000 employees
Website	abanoffshore.com

The group has also ventured into construction, offshore and onshore drilling, wind energy and power generation, Information Technology enabled services, hotels and resorts, tea plantations and in marketing.^[4][5]

Financials

In 2021, the company reported consolidated net loss of Rs 1972.53 crore.^[6][7]

Controversies

Central Bank of India Insolvency Case

Central Bank of India filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, against Aban Offshore Ltd, for defaulting on loans. The bank aimed to initiate insolvency proceedings for recovery of outstanding dues.^[8][9]

In August 2022, Aban Offshore entered into a one time settlement agreement with Central Bank of India. Under the agreement, Aban Offshore paid the outstanding principal of ₹121.78 crore (equivalent to ₹129 crore or US$15 million in 2023) to the bank.^[10]

After the payment and settlement, the Central Bank of India withdrew its insolvency case against Aban Offshore Ltd at the National Company Law Tribunal.^[10]

Aban Loyd Chiles Customs Case

In 2015, the Directorate of Revenue Intelligence seized the vessel^{[clarification needed]} on grounds of alleged unauthorized deployment beyond the contractual zone. The company challenged the imposition of penalties and customs duty, arguing that the use and deployment of Aban-ICE complied with amended essentiality certificates from governmental authorities such as the Directorate General of Hydrocarbons.^[11]

Sanctions and OFAC Settlement

Aban Offshore's Singapore subsidiary was penalized by the U.S. Office of Foreign Assets Control for violating Iranian sanctions regulations in 2017. The violation involved re-exporting U.S.-origin goods to Iran without proper authorization. Aban agreed to a settlement and paid a civil monetary penalty.^[12][13]