ADES Holding Company (“ADES”, the “Group” or the “Company”), a world
leading international oil and gas drilling services provider, is pleased to announce that its offshore jackup rig “Admarine
504” has been awarded a drilling contract in Nigeria with Brittania-U, an indigenous integrated energy company that
operates across the oil and gas value chain in Nigeria.
This award represents a new milestone in the Group’s successful diversification strategy, marking its entry into the
eleventh country of operation and tapping into the dynamic West African oil and gas sector. This comes alongside its
existing robust presence in the Middle East and Southeast Asia as the Group continues to deliver on its global expansion
strategy.
In light of the Group’s geographic diversification and expansion strategy, ADES and Admarine 504’s current client in
Saudi Arabia have mutually agreed to suspend the rig’s operation in the country, while retaining the remaining backlog
value with the Group’s client by way of extending the original term of the temporarily suspended contract. Admarine
504 will be mobilized from the Middle East to West Africa in the first quarter of 2025, noting that the agreed suspension
mechanism offers enough flexibility for the suspended rig to complete new deployments before resuming work in Saudi
Arabia post suspension.
Key Highlights of the Award
• Contract Scope and Duration: The contract is to drill and complete six wells within an estimated duration of
365 days. Operations are expected to commence in the second quarter of 2025.
• Operating Structure: Operations of the rig to be jointly handled by ADES and Valiant Offshore Contractors
Limited (in-country partner) under a charter structure, where ADES will provide the rig along with its senior
crew and relevant management systems to Valiant against a charter fee. In return, Valiant shall fulfill its drilling
obligations under its contract with Brittania-U.
• Backlog: The value of the charter contract between ADES and Valiant is estimated at SAR 81.8 million (USD
21.8 million), which represents a percentage from the drilling contract between Brittania-U and Valiant. The
charter revenue generated by ADES should be mostly reflected in its EBITDA and profitability.
Commenting on the award, Dr. Mohamed Farouk, CEO of ADES Holding said: “Following our successful
expansion over the past couple of years into India and Southeast Asia, we are now making our first foray into West
Africa with this new award in Nigeria, a country with high oil and gas potential and strong demand for drilling rigs in
the coming years, particularly in the offshore jackup segment. This award is an important milestone in our global
expansion journey, with West Africa and Southeast Asia together representing key growth geographies for ADES as we
diversify our geographical footprint and capitalize on emerging opportunities in these undersupplied markets.”
“Meanwhile in our home market of Saudi Arabia, we continue to demonstrate agility with a client-centric approach –
aligning with our client’s strategic needs and objectives – while leveraging newly afforded capacities to pursue attractive
opportunities in existing and new markets. In that regard, the Group has successfully secured new awards for four of the
five previously suspended rigs in record time, and we are confident in the Group’s ability to redeploy the remaining rig
during the year.” Farouk added.
