Asian Oilfield Services gains nearly 10% after winning contract

NEW DELHI: Shares of Asian Oilfield Services advanced as much as 9.83 per cent in early trade on Thursday after the company informed bourses that its wholly-owned subsidiary, Asian Oilfield & Energy Services DMCC, Dubai, has signed a contract for providing operations and maintenance services (O&M) for an offshore production unit operating at EBOK field offshore Nigeria. The total value of contract is about $95 million for a total period of 5 years.

The company added that it had earlier announced on December 27, 2016 about receipt of a binding Letter of Intent (LOI) for contract of approximately $57 million for providing O&M services for 3 years. The above contract of $95 million for a total period of 5 years (inclusive of client options) is for the same LOI.

Asian Oilfield & Energy Services DMCC has also entered into an agreement to acquire 99.99 per cent shareholding of Ivorene Oil Services Nigeria (a company registered under Nigeria) to provide local support for this O&M contract.

The scrip was trading 4.92 per cent up at Rs 172.90. Shares of the company opened at Rs 172.70 and touched a high and low of Rs 181 and Rs 170.10, respectively, in trade so far. Benchmark BSE Sensex was up 98.45 points, or 0.34 per cent, at 28,963.