1 ABAN LOYD CHILES OFFSHORE LIMITED · 22 ABAN LOYD CHILES OFFSHORE LIMITED Aban Loyd Chiles...

111 ABAN LOYD CHILES OFFSHORE LIMITED


Aban Loyd Chiles Offshore Ltd

Forward Looking Statements

This presentation contains statements that constitute “forward looking statements” including, without limitation, statements relating to the implementation of strategic initiatives, and other statements relating to our future business developments and economic performance.

While these forward looking statements represent our judgment and future expectations concerning the development of our business, a number of risks, uncertainties and other important factors could cause actual developments and results to differ materially from our expectations.

These factors include, but are not limited to, general market, macro-economic, governmental and regulatory trends, movements in currency exchange and interest rates, competitive pressures, technological developments, changes in the financial conditions of third parties dealing with us, legislative developments, and other key factors that we have indicated could adversely affect our business and financial performance.

Aban undertakes no obligation to publicly revise any forward looking statements to reflect future events or circumstances.


Industry Standing

Aban LoydOwns and operates 6 Offshore Jack-up Rigs, an FPSO (the only one in India) and two Drillships; one new-built jack-

up is under construction


Vision

? To continue the market leadership in providing offshore drilling services in India

? To have a global presence in the offshore drilling industry

? To be amongst the top ten offshore drilling asset owners in the world


Growth of Aban Loyd

• Promoted in 1986 by lateMr. M A Abraham in technical collaboration

• Commenced operations with 2 Jack up Rigs (Aban 1 and Aban 2)

• Aggressive build up of assets since March 04, balance sheet has grown nearly three times

• Purchased drill ship Frontier Ice in Sep 2004• Purchased a 300 ft Jack up Offshore drilling rig Pride West Virginia (now renamed as Aban V) in Dec, 2004• Purchased a 250 ft Jack up Offshore drilling rig Energy Explorer IV (now renamed as Aban VI) in Feb, 2005• Purchased a 250 ft Jack up Offshore drilling rig Rowan Texas in September 2005

• Further capacity expansion in the pipeline

• Acquired Hitech Drilling Services India Limited from the TATA’s in 2001.

• Hitech owned one 300 ft Jack-up Rig and a Floating production, storage and offloading facility (along with cash reserves of INR 0.45 BN)

• Consideration of INR 1.65 BN (USD 42 MM)

• Hitech merged with Aban with effect from Apr, 2001

ORGANIC INORGANIC


Rig Contract Status

Oct 2007

Jan 2008

Nov 2007

Jan 2008

Nov 2006

Contract Validity

120

148

148

148

85

Current **

rate (approx)(USD ‘000)

35-40Oriental Oil250 ft Jack up Aban VI

55-58ONGC300 ft Jack upAban V

55-58 ONGC300 ft Jack upAban IV

55-58ONGC300 ft Jack upAban III

25-35ONGC200 ft Jack upAban II

ContractDay Rate

(USD ‘000)

ClientTypeRig Name

** estimated based on recent fixtures


Rig Contract Status

80Mar 200840-45ONGCDrill ShipFrontier Ice

1202 firm wells + 2 well options

71-73HOEC250 ft Jack upAban VII

185NANAUnder construction

375 ft Jack upAban VIII

4 firm wells + 4 well options

July 2007

Contract Validity

300

60

Current **

rate (approx)(USD ‘000)

295-300PioneerDrill shipAban Abraham

25-28HardyFPUTahara

ContractDay Rate

(USD ‘000)

ClientTypeRig Name

** estimated based on recent fixtures


Matching assets to revenues

? Current Contracts run till FY 08? Around 42% of the current debt to be repaid by FY 08? Contracts largely with highly credit rated parties? Ability to place new acquisitions on charter with little or no

time delay


Core Competencies

? Lowest cost operator leading to higher margins? In-house engineering capabilities? High credibility and repeated accolades from

clients for technical capabilities? High safety norms matching international

Standards? Highly trained technical & commercial employee

strength


Aban Loyd - Strengths

• 100% drilling revenue in foreign currency (predominantly USD)

• High EBITDA Margins (above 55%)

• High quality of Receivables (ONGC)

• Firm Cash Flows

• Continuous Dividend track record for the last 18 years

• Internationally mobile assets of over USD 600 mn, against book value of USD 220 mn

• Easily saleable assets - an active market for rigs internationally as very few rigs have been built in the past several years

• Opportunity to deploy Rigs in international waters


? F1+(Ind) by Fitch for Short Term Debt Program for INR 250 MM (USD 5.75 MM).

? ‘CARE A (RPS)’ rating by CARE for Preference Shares of INR 1500 MM (USD 35 MM).

? Ranked 2nd Best Investor Friendly Company by “BUSINESS TODAY” (a prominent Indian Business weekly) in June 05

? Ranked 253 among the top 500 companies in India as per ET500 rankings of the Top Wealth Creators by the Economic Times (daily Indian Business paper) in June 2005

? Aban’s drilling and production services is ISO 9001:2000 certified

Credit Ratings / Testimonials


Shareholding Pattern as on 31 Jan 2006

100.0036,886,595TOTAL

24.308,964,574Public

13.364,928,301Institutional Investors

62.3422,993,720Promoters (including Foreign Collaborators)

%No. of SharesParticulars


ENVIRONMENT AND OPPORTUNITIES


Industry Outlook? Jackup day-rates are surging in all regions

due to:? Worldwide supply deficit – it takes 2 to3 years to build a new

rig? Very low addition to rig fleet in the 90s? Attrition from recent hurricanes in the GOM? Global competition for jack ups

? Willingness to sign long term contracts ? Pressure on E & P companies to accrue oil reserves.


Market for Jack up rigs? Middle East

o Demand for jack-ups likely to increase by at least 14-15 rigs by end of 2006

o Demand coming in mainly from Saudi Arabia.o Day rates in Saudi Arabia have crossed USD 100,000 for 300 ft jack-ups

? South East Asiao Day rate fixtures in Southeast Asia range from USD 90,000-USD

150,000.o Deficit of around five to six units in the first half of 2006o Increased activity in the region is fuelling rising demand in the sector

? Indiao ONGC is still having an unfulfilled requirement of five to six rigs.o Recent fixtures for 300 ft rigs have ranged from USD 99,000 to USD

147,000 per day.


Total units operating in India

35827TOTAL

11_Dolphin AS

1037Transocean

1_1Pride Foramer

1_1Sapiem

2_2ENSCO

2_2Noble Drilling

1_1Jagson Intl

211Great Eastern Shipping

514Aban Loyd

1028ONGC

TOTALDrillshipsJack upsOwner


? Present oil prices have touched all time high of USD 68-69 per barrel

? E&P spend expanding after a long period of time

?Cash flows of oil companies strong

?Need to expand reserves

? Current day rates ruling at recent highs of USD 125,000 to 150,000 per day for 300 ft +Jack-up Rigs

Oil Prices and Day Rates


Opportunities in India on account of NELP

? Large private sector players like Reliance,Cairn, Niko, Hardy Exploration, British Gas, GAIL, GSPCL entering into the exploration sector

? Recent Reliance gas reserve find has resulted in a spurt in global interest in the Indian oil sector

? Consequently, demand for Rigs in India is likely to increase

? Has worked on contracts with International companies like Cairn Energy, Hardy Exploration & Oriental Oil

? Experience of working with private sector players gives Aban anedge in meeting the demands of the private sector players

Demand for Rigs

Advantage for Aban Loyd


Expansion

? Formed a Wholly-owned Subsidiary in Singapore viz.Aban Singapore Pte Ltd

? Contract with PPL Shipyard in Singapore for construction of one 375 ft jack-up drilling rig

? Delivery in March 2008? Contracted value is

approximately USD 160 million

? Aban has acquired a company viz. West Africa Drilling Co N.V. (WADC)

? WADC has acquired drillshipPeregrine III (now renamed as Aban Abraham)

? Capable of drilling in a water depth of 5000 ft

? Estimated cost around USD 185 million (including refurbishment)

? Awarded a contract for carrying out drilling operations in West Africa

Past Financials


Past Financials-Balance SheetAs at As at As at

BALANCE SHEET 31st March,2005 31st March,2004 31st March,2003USD Mn USD Mn USD Mn

I. SOURCES OF FUNDS(a) Share Capital 1.66 1.66 1.66 (b) Reserves and Surplus 48.04 38.31 29.08

2. Loan FundsSecured Loan 161.33 54.13 69.21

3. Deferred Tax (Net) 12.69 9.93 7.73

TOTAL FUNDS EMPLOYED 223.71 104.03 107.68

II APPLICATION OF FUNDS1. Fixed Assets

Gross Block 256.39 130.04 129.76 Less:Depreciation 75.72 65.10 56.57 Net Block 180.67 64.94 73.20 Add: Capital Work in Progress 0.77 1.58 0.51

181.44 66.52 73.70 2. Investments 5.36 17.18 5.18 3. Current Assets,Loans and Advances

(a) Inventory of Stores & Spares 9.97 5.17 5.16 (b) Sundry Debtors 15.35 6.98 6.33 (c) Cash and Bank Balances 22.06 9.40 6.33 (d) Loans and Advances 3.91 3.41 11.13

51.28 24.96 28.95 Less:(A) Current Liabilities 12.04 4.98 2.81 (B) Provisions 2.33 1.40 0.93

14.37 6.38 3.74 Net Current Assets 36.91 18.57 25.21

4. Miscellaneous Expenditure - 1.74 3.59

TOTAL ASSETS 223.71 104.03 107.68


Past Financials- P & L StatementYear ended Year ended Year ended

PROFIT AND LOSS ACCOUNT 31st March,2005 31st March,2004 31st March,2003USD Mn USD Mn USD Mn

I INCOMEIncome from Operations 64.94 62.21 54.80 Other Income 1.83 3.44 1.74

66.77 65.65 56.53

II EXPENDITUREOperating, Administrative and Other Expenses 31.11 32.33 31.34 Interest 4.27 5.79 8.28 Depreciation 10.66 8.56 7.40 Goodwill Amortised 1.41 1.41 1.41 Deferred Revenue Expenses Written off - 0.01 0.01

47.45 48.10 48.45

Profit for the year before taxation 19.32 17.55 8.08 Less: Provision for taxation -Current Tax 4.94 4.72 0.64 -Deferred Tax 2.75 2.21 5.41 Profit for the year after taxation 11.62 10.63 2.04 Add: Profit brought forward from Previous Year 32.01 23.91 23.03

Profit available for Appropriation 43.63 34.54 25.07 Transfer to General Reserve 1.35 1.12 0.22 Proposed Dividend 1.66 1.24 0.83 Tax on Dividend 0.23 0.16 0.11 Balance Carried to Balance Sheet 40.40 32.01 23.91


Past Financials-Cash Flow StatementCASH FLOW STATEMENT 2004-2005 2003-2004 2002-2003

USD mns USD mns USD mns

A CASH FLOW FROM OPERATING ACTIVITIES:NET PROFIT BEFORE TAX 19.32 17.55 8.08 ADJUSTMENTS FOR:Miscellaneous Expenditure - 0.01 0.01 Amortised Dry Docking expenses 1.74 1.84 1.84 Depreciation 10.66 8.56 7.40 Goodwill written off 1.41 1.41 1.41 Interest 4.27 5.79 8.28 Income from Non -Trade Investments (0.63) (0.48) (0.52) Profit on sale of Long Term and Current Investments (0.19) - (0.02) Loss on sale of Investments - 0.02 - Provision no longer required - (0.08) - Loss on sale of Fixed Assets - 0.12 0.09 Profit on sale of Assets (0.02) OPERATING PROFIT BEFORE WORKING CAPITAL CHANGES 36.56 34.75 26.58 ADJUSTMENTS FOR:Inventories (4.80) (0.01) (0.52) Trade and other receivables (9.06) 4.69 5.43 Trade and other payables 6.73 2.29 0.32 CASH GENERATED FROM OPERATIONS 29.44 41.72 31.81 Direct taxes paid (4.22) (2.72) (1.16) NET CASH FROM OPERATING ACTIVITIES 25.22 39.00 30.64

B CASH FLOW FROM INVESTING ACTIVITIES:Purchase of fixed assets (127.12) (3.01) (28.19) Sale of fixed assets 0.15 0.09 0.05 Interest and dividend received 0.54 0.87 0.15 Purchase of Investments (65.75) (78.27) (14.03) Sale of Investments 77.76 66.32 10.35 NET CASH USED IN INVESTING ACTIVITIES (114.42) (14.00) (31.67)

C CASH FLOW FROM FINANCING ACTIVITIES:Proceeds/(Repayment) of Long Term Borrowings 107.20 (15.08) - Proceeds from partly paid shares 0.00 - 12.40 Dividend paid including tax on dividend (1.40) (0.93) (0.66) Interest paid (3.94) (5.90) (8.53) NET CASH (USED IN)/ FROM FINANCING ACTIVTIES 101.86 (21.92) 3.21 NET INCREASE /(DECREASE) IN CASH AND CASH EQUIVALENTS 12.66 3.07 2.19 CASH -at beginning of the year 9.40 6.33 4.14 CASH - at end of the year 22.06 9.40 6.33


Aban Rig Fleet


JACK UP RIG - ABAN II

RIG SPECIFICATIONS

Year of Build : 1981

Major Upgradation and Refurbishment : 2001

Main Dimensional (Hull) Length : 166 ft (226 ft including Helideck)

Breadth : 109 ft (132 ft max. at pods )

Depth : 16 ft

Total Leg Length : 423 ft each

Designed Draft : 8.75 ft (max)

Slot size : 50 ft x 50 ft

MAT : 210 ft x 170 ft x 12 ft (2 ft Skirt incl)

Slot in Mat : 87 ft long x 90 ft wide

Classification Society : ABS

Accommodation/Hospital : 90 Persons/3 beds

Helideck : 60 ft x 70 ft (Designed for Sikorsky S-61N

Contract & Location : ONGC, on the EAST COAST OF INDIA

Contract Validity : Till Oct, 2006

Contract day rates: USD 25,000-USD 27,000


JACK UP RIG - ABAN III

RIG SPECIFICATIONS


Major Upgradation and Refurbishment : 1984 / 2003

Main Dimensional (Hull) Length : 217 ft -10-5/16"

Breadth : 200 ft - 6"

Depth : 26 ft - 0"

Draft : 15 ft - 11-1/2"

Total No. of Legs / Type / Length : 3 / Square Open Truss / 410 ft

Classification Society : BV / IRS

Accommodation/Hospital : 94 Persons/3 Beds

Helideck : Round, 70.50 ft Dia (Designed for Sikorsky S-61 N)

Contract & Location : ONGC at MUMBAI HIGH

Contract Validity : Upto Jan, 2008

Contract day rates range : USD 55,000-60,000


JACK UP RIG - ABAN IV

RIG SPECIFICATIONS



Hull Dimension : 212 ft x 210 ft x 26 ft

Cantilever Movement : 45 ft Longitudinal 12 ft transverse each side

Max. Allowable Leg Length below Hull : 363 ft


Classification Society : ABS *A1

Accommodation : 96 Persons

Helideck : 80 ft Dia. (Designed for Sikorsky S-61)


Contract Validity : Upto Nov, 2007

Contract day rate range : USD 55,000-60,000


JACK UP RIG - ABAN V

RIG SPECIFICATIONS


Major Upgradation : 2002

Hull Dimension : 180 ft x 175 ft x 25 ft

Cantilever Movement : 40 ft Longitudinal 10 ft transverse each

Max. Allowable Leg Length below Hull : 361 ft


Classification Society : ABS *A1

Accommodation : 84 Persons

Helideck : 62 ft Dia. (Designed for Sikorsky – 61)


Contract Validity : Jan, 2008



JACK UP RIG - ABAN VI

RIG SPECIFICATIONS



Main Dimensional (Hull) Length : 170 ft

Breadth : 130 ft

Depth : 19 ft

Total Leg Length : 337 ft

Total No. of Legs/Type/Length : 4/Triangular legs


Accommodation/Hospital : 78 Persons/3 Beds

Helideck : 80 ft x 80 ft (Designed for Sikorsky S-61 N)

Contract & Location : Oriental Oil Co, Dubai (in the Persian Gulf)

Contract Validity : Oct, 2007



FPU - TAHARA

FPU SPECIFICATIONS


Major Upgradation and Refurbishment : 1988 (converted to FPU) and 1997 (Upgradation)

Classification : A1 Floating Production System

Length : 322 ft

Breadth : 360 ft

Height to main deck : 146 ft

Operating Draft Afloat condition : 70 ft - 85 ft

On bottom condition : :50 ft - 125 ft

Contract & Location : Hardy Oil, on the EAST COAST OF INDIA

Contract Validity : Jul, 2007


)


DRILL SHIP - FRONTIER ICE

RIG SPECIFICATIONS

Year of Build : Built as Tanker in 1959 and converted to Drillship in 1975

Classification : ABS Maltese Cross A.1(M)

Length : 183.0 m

Breadth : 21.7 m

Displacement : 26,156 T

Operating Draft : 9.4 m

Variable deck load : 9,805 T

Mooring

- Anchors : 8 Nos. x 15 T 5 Nos. x 9 T 3 Nos. x 15 T

- Anchor Wire line : 8 Nos. x 3200 ft x 2-3/4” Chain

- Anchor Winch : National, Rating 4,95,000 lbs


Contract Validity : Feb, 2008



JACK UP RIG – Aban VII

RIG SPECIFICATIONS


Rig Type : Jackup

Jackup Type : Independent Leg Slot

Rig Design : Le Tourneau Class 52-S

Rated Water Depth : 250 ft

Drilling Depth : 20,000

Rig Design : Le Tourneau Class 52-S

Built By : Marathon Le Tourneau

Flag : Panama


Contract & Location : Currently envisaged to be used in the spot market

Spot Market Day Rate Range : USD 70,000-75000

THANK YOU

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