Saudi Oil and Gas Driller ADES Secures Contract Renewal for Offshore Jackup Rig

Saudi oil and gas driller ADES has recently announced the signing of a contract renewal for one of its standard offshore jackup rigs that was previously suspended by Saudi Aramco.

The company has renewed the contract for the undisclosed rig for a firm duration of ten years, providing significant long-term revenue visibility and backlog sustainability. The deal is estimated to be valued at approximately $290 million.

The rig in question is currently operating under a medium-term contract in Egypt. ADES has a strong presence in Egypt with seven jackup rigs in operation – Admarine VIII, Admarine V, Admarine IV, Admarine III, Admarine VI, Admarine 88, and Admarine 260. One of these rigs will be relocated back to Saudi Arabia after completing its current contract.

Earlier last year, ADES had mutually agreed with Saudi Aramco to temporarily suspend operations on six of its 33 offshore jackup rigs operating in the Kingdom for up to 12 months.

While the customer was not immediately disclosed by the company, it was later revealed to be the Saudi giant Aramco. Presently, ADES has 30 rigs on hire with Aramco, showcasing a strong partnership between the two entities.

CEO of ADES, Mohamed Farouk, expressed his satisfaction with securing the renewal for the unit in Saudi Arabia, especially considering it was among the previously suspended rigs. He emphasized the Group’s positive outlook on the business in the Kingdom and highlighted plans to focus on securing further renewals and backlog additions in key markets to enhance long-term revenue visibility.