ADES Holding Company to Acquire Shelf Drilling

A subsidiary of ADES Holding Company, part of the Saudi Arabia-headquartered ADES Group, has reached an agreement with UAE-based Shelf Drilling for the acquisition of its business.

The acquisition will be structured as a cash merger under Cayman Islands law between ADES International Cayman (BidCo) and Shelf Drilling. The transaction, expected to close in Q4 2025, will result in Shelf Drilling becoming a wholly-owned subsidiary of ADES and being delisted from the Oslo Stock Exchange.

The cash consideration per Shelf Drilling share amounts to an equity value of approximately NOK 3.9 billion, equivalent to around $380 million.

Completion of the acquisition is subject to customary closing conditions, including approval by an extraordinary general meeting of Shelf Drilling’s shareholders scheduled for September 16. The board of Shelf Drilling intends to recommend the transaction to its shareholders, considering it as fair value.

The acquisition is expected to create a leading global player in shallow-water drilling, with a combined fleet of 83 offshore jack-ups, including 46 premium units. As of June 30, 2025, the total backlog for the combined entity amounts to $9.45 billion.

ADES anticipates achieving annual operational cost synergies of $40-50 million over the medium term, along with the necessary costs to realize these synergies. Additionally, ADES will assume Shelf Drilling’s existing debt obligations as part of the deal.

On a separate note, ADES’ Admarine 12 jack-up barge was involved in an incident in the Gulf of Suez, resulting in the unfortunate loss of four lives with three individuals still missing.

Meanwhile, Shelf Drilling recently secured a new contract in the UK and an extension offshore Egypt, showcasing its continued operational activities.