ABG in oil rig deal

ABG Shipyard in India has entered into a technical collaboration with Friede & Goldman of the U.S. for manufacturing offshore oil rigs at Dahej in Gujarat. The agreement was signed in October and the yard plans to start constructing offshore jack-up rigs by the end of 2007.

ABG has a ship-building yard at Surat in Gujarat, and is planning to set up another in two phases at nearby Dahej. An official for ABG said the company has adequate funds for the first phase of the project, and will invest $125 million in the second phase through an overseas debt issue.

The company builds oil and gas tankers, bulk carriers and short sea ships and its order book stands at 23.85 billion rupees. The company now plans to build vessels up to 120,000 DWT at Dahej in addition to jack-up rigs. ABG reported a net profit of 270.7 million rupees in the quarter to 30 September from 189.5 million rupees in the corresponding period last year.