On 11 July, Saudi Arabian sovereign wealth fund-backed oil and gas drilling company ADES Holding Company (ADES), a world leading international oil and gas drilling services provider, is pleased to announce that it has secured a contract extension for one of its standard jackup drilling rigs operating in the Kingdom of Saudi Arabia (KSA). The contract extension is for a duration of 10 years, which is significantly longer than the standard contract terms typically offered for similar assets globally.
According to the contract, the 1980-built jackup rig Admarine 657 has been awarded a 10-year contract extension worth about $351 million, which will take effect in the third quarter of 2024, when the existing contract with Saudi Aramco expires.
ADES Holding has a fleet of 49 offshore assets, including jack-up rigs, barges and mobile offshore production units, located in seven countries, according to its website.
Commenting on the contract extension, Dr. Mohamed Farouk, CEO of ADES Holding said: “We are very pleased to have secured this important renewal for Admarine 657 with our client in KSA, which signifies renewed confidence in our ability to continue delivering best-in-class safety and operational performance, all while underlining the sustainability of our business in the Kingdom. The extension comes at a time when the offshore jackup market is witnessing severe tightness, and such ten-year extension adds a considerable amount of backlog which further supports future revenue growth and extends backlog visibility in line with the Group’s strategy.