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Shiv Vani bags drilling contract-news03052012


Shiv Vani wins an offshore drilling contract and acquired a jack up offshore drilling rig; positive for the stock, we retain Buy with TP of Rs283


Shiv Vani wins an offshore drilling contract from Gulf of Suez Petroleum Company (GUPCO), a joint venture between BP and Egyptian General Petroleum. The drilling contract is for duration of two years extendable by one year, in Gulf of Suez, Egypt.

Also, the company has acquired ' Ocean Heritage' a jack up offshore drilling rig, through its 100% subsidiary in Singapore, from Diamond offshore Heritage LLC, to deploy with GUPCO to execute the contract. The dig is fully refurbished and ready for deployment.

This is a key breakthrough for the company for strategic purpose. Hence, positive for its earnings and revenue visibility. We continue to rate it Buy with a target price of Rs 283.  
....more info



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