**Report Date: February 2026** **Status: Under Corporate Insolvency Resolution Process (CIRP)** Aban Offshore Limited is an Indian multinational provider of offshore drilling and oil field services. Once a dominant player in the global jack-up rig market, the company is currently navigating a formal insolvency process under the **Insolvency and Bankruptcy Code (IBC) 2016**. This profile details the company’s transition toward an asset-light model, its current fleet status, and the severe financial distress that led to its current regulatory standing. --- ### **Current Corporate Status & Insolvency Proceedings** As of **February 2026**, Aban Offshore is operating under the **Corporate Insolvency Resolution Process (CIRP)**. This process was initiated by the **National Company Law Tribunal (NCLT)**, Chennai Bench, on **September 1, 2025**, following a petition by **Punjab National Bank** regarding a default of **₹366.09 crore**. * **Management Control:** The powers of the Board of Directors are currently **suspended**. Operations are managed by a **Resolution Professional (RP)** to maintain the company as a **going concern**. * **Admitted Claims:** As of **November 12, 2025**, the total admitted financial creditor claims are staggering: * **Standalone Claims:** **₹1,191 crore**. * **Consolidated Secured Claims:** **₹25,037 crore**. * **Settlement Status:** A proposed **One-Time Settlement (OTS)** was formally rejected by lenders in **January 2026**. The company is now focused on the resolution process to maximize value for stakeholders. --- ### **Operational Fleet & Asset Deployment** The company has undergone a massive contraction of its physical asset base to mitigate maintenance costs and service debt. The current strategy focuses on high-utilization contracts in the Indian subcontinent. | Rig / Unit | Location | Status | | :--- | :--- | :--- | | **Aban II** | — | **Off Contract / Idle** | | **Aban III** | **West Coast of India** | Under Contract (**ONGC**) | | **Aban IV** | **West Coast of India** | Under Contract (**ONGC**) | | **FPU Tahara** | — | **Sold (May 2024)** | **Key Operational Highlights:** * **Primary Client:** **ONGC** remains the anchor customer, with rigs **Aban III** and **Aban IV** secured under **36-month** contracts. * **Day Rate Recovery:** The company successfully renegotiated contracts for active rigs at substantially higher day rates, improving immediate operational cash flows. * **Fleet Rationalization:** Between **FY23** and **FY24**, the company divested **14 assets**, including rigs **Aban V, VI, Ice, Abraham**, and the **Deep Drilling (DD)** series (**DD2, DD4, DD5, DD6, DD7, DD8**). --- ### **Strategic Pivot: The Asset-Light Model** To survive the liquidity crisis, Aban Offshore is transitioning from a traditional asset-heavy owner-operator to an **asset-light service provider**. * **Sourcing Strategy:** The company is exploring the chartering of third-party offshore units to bid for Indian contracts, reducing the need for capital expenditure. * **Technological Integration:** Implementation of **AI/IoT analytics**, **Fuel Monitoring systems**, and **Conditional Monitoring** for predictive maintenance to drive efficiency in the remaining fleet. * **Energy Transition:** While the core remains hydrocarbons, the company is evaluating long-term diversification into **offshore wind farm** maintenance and other renewable sectors. * **Structural Streamlining:** To reduce administrative overhead, **7 overseas subsidiaries** were amalgamated into **Deep Drilling Invest PTE Ltd**, and non-operational entities like **Aban 7** and **Aban Pearl** were struck off. --- ### **Global Interests & Subsidiary Network** The group operates through **10 subsidiaries** and **two associates**, with significant interests held via Singapore and the UK. * **Aban Holdings Pte Limited (Singapore):** The primary vehicle for international rig management. * **Caldera Petroleum (UK) Limited:** Holds a **12.5% retained interest** in the **UK Continental Shelf (Licence P198)** for the Marigold and Sunflower fields under a farm-out agreement with **Anasuria Hibiscus (UK) Ltd**. * **Aban Energies Limited:** A domestic subsidiary focused on wind turbine maintenance (following the exit from wind power generation). * **Belati Oilfield Sdn Bhd (Malaysia):** An associate company where the group maintains a **49% interest**. --- ### **Financial Performance & Capital Structure** The company’s financial position is characterized by **Net Negative Worth** and a total erosion of equity. **Consolidated Financial Summary:** | Metric (₹ in Million) | FY 2022-23 | FY 2023-24 | FY 2024-25 | | :--- | :--- | :--- | :--- | | **Revenue** | 3,967.27 | 3,996.65 | **4,756.55** | | **EBITDA** | (350.99) | 773.91 | **1,774.94** | | **EBITDA Margin** | (8.85%) | 19.36% | **37.32%** | | **Net Profit / (Loss)** | (27,842.98) | (15,751.48) | **(15,300.77)** | **Debt Profile (as of March 31, 2025):** * **Total Borrowings:** **₹15,697.20 crore**. * **Net Negative Worth:** **₹25,402 crore**. * **Preference Shares:** **₹281 crore** in non-convertible redeemable preference shares remain unredeemed since **2014**, leading to a suspension of trading on the BSE. * **Personal Guarantees:** The Managing Director has provided personal guarantees amounting to **₹2,032.77 crore** to various banks. --- ### **Critical Risk Factors & Audit Observations** Investors should note the extreme risk profile associated with the company’s current insolvency status. * **Going Concern Uncertainty:** Auditors have issued a **Disclaimer of Opinion**, citing material uncertainty regarding the company's ability to continue operations given that liabilities exceed assets by over **US$ 2.9 billion**. * **Credit Rating:** Currently rated **CARE D (Default)**. * **Asset Impairment:** Rigs with a carrying value of only **$29.91 million** are pledged against massive borrowings of **$1.76 billion**, indicating a severe collateral shortfall. * **Legal & Tax Contingencies:** * **₹1,648.65 crore** in disputed tax demands (Income Tax, Service Tax, VAT). * **Class action suits** by preference shareholders regarding non-redemption of shares. * **SARFAESI Act actions** by Punjab National Bank, resulting in the possession of freehold land. * **Operational Risks:** The CIRP process may trigger "bareboat charter" terminations, potentially leading to the repossession of leased rigs and additional liquidated damages. * **Market Volatility:** While Brent crude prices (forecasted at **$74/bbl** for 2025) support exploration, the global shift toward **Decarbonization** and **Green Hydrogen** poses a long-term threat to the conventional offshore drilling business model.