Essar Oil agrees to sell drilling business

Feb. 17, 2003
Essar Oil Ltd., part of the cash-strapped Mumbai-based Essar group, finalized a deal with the Abu Dhabi-based Bin Jabr group to sell its profitable oil drilling business.

By an OGJ correspondent

MUMBAI, Feb. 17 -- Essar Oil Ltd., part of the cash-strapped Mumbai-based Essar group, finalized a deal with the Abu Dhabi-based Bin Jabr group to sell its profitable oil drilling business in a deal valued at $52-63 million.

Essar Oil, owned by the Ruia brothers, will sell its 11 rigs, including 4 deepwater and 7 mobile offshore rigs. The deal was brokered by management consultants, KPMG LLP.

Essar sources said the decision to sell the oil drilling unit was in keeping with the group's desire to focus on just three areas in the oil and gas business—exploration, refining, and marketing. The company earlier exited its offshore drilling business.