Offshore drilling contractors such as Aban Offshore, Jindal Drilling, GOL Offshore are all up in the green, anywhere between 14-17%, with record activity (volume surge of 4-20x on BSE) across all the 3 counters.

Iran has reached a historic nuclear deal with 6 global powers this afternoon, wherein some sanctions on it will be removed in exchange for restrictions to its nuclear program. Analysts expect that if sanctions are lifted off Iran, it will lead to E&P capex in the country and increase in oil exports. Hitherto, sanctions had crippled Iran's oil production, halving exports and limiting new development projects.

Iran accounted for ~35% of Aban Offshore’s revenue, the latter having deployed 5 rigs in the country. Iran sanctions are likely to aid Aban's working capital situation. GOL Offshore has, in the past, drilled four prestigious and successful wells for ONGC Videsh in Iran.

Thus, with sanctions being lifted, exploration and production activity will get revived in the Iran, coupled with smother payment process between the India and Iran. This is a big cheer for the Indian offshore drilling companies and business activity is expected to revive in the future.