Basantjee,

I had a chance to read this article and its really wonderfully articulated !!!

Thanks for this article. I have read it again and again. This also remindes me my faourite interview of Samir arora on Capitalideas which I read again and again

Aban Offshore, the country's largest oilfield services provider, took a hit of Rs 151 crore when it had to terminate the bare boat charter contract for jack-up rig Murmunskaya 10 months early and return the asset back to its owner. The rig was not deployed since the there was lower demand and it was better for the company to return it instead of paying 3 million USD every month plus maintain it.
Three of Aban's rigs -- two high-end Deep Driller 6 and 7 and an older asset Aban 7 -- are currently idle. Three more are coming up for renewal in 6 months. The company has started to lower its day rates and has been aggressively marketing the rigs globally.
The number of onshore and offshore rigs exploring oil and natural gas globally has fallen to 2,313 in March from 2,753 a year ago. Close to 45 active offshore rigs are operating in Indian waters.
With the demand for jack-up rigs moderating, charter rates, which were soaring till mid 2008, are also softening. Aban Offshore's deep water semi-submersible Aban Pearl, capable of drilling up to 1,250 ft, was contracted at a day rate close to $3,60,000. Now the company is looking at deploying them at lowered rates, even as much as 25% lesser than the prevailing rates.



Edited by basant - 06/Jan/2010 at 2:57pm

Also, i feel water treatment and waste management will be an interesting sector to watch. Many infra companies have shifted their focus on these areas. Developed economies give lot of importance to these sectors of sustainability. Basantji your views on the sectors I mentioned?

All positive negative view welcome from Teddies on - Resources (companies owning them), fertilizers and water treatment/waste management sectors.

If we closely look at past orders and current running orders and orders in pipeline of say Patel Engineering, we get to see this -
1. Major past orders are of Dams. They built many dams at different locations of the world until 2005
2. Somewhere in between their focus shifted to full fledged Hydro Projects, which is still in progress
3. Their maximum current projects and the one in pipeline are in Water irrigation infrastructure

Also, Praj Industries in specializing in constructing water treatment plants

The finances of these companies are not compelling for investment, but Patel is not so bad also, decent PE, Mcap of just 1000Cr with much more order book and sales