ADES, the Saudi-based drilling company, has renewed a long-term contract for one of its offshore jackup rigs that had been temporarily suspended by Saudi Aramco. The updated deal will run for a solid 10 years, marking a major step in restoring ADES’ fleet operations and strengthening its future revenue pipeline.
Deal Worth an Estimated $290 Million
While the rig’s specific name hasn’t been disclosed, sources indicate the contract is valued at around $290 million. That’s a significant number, considering the market’s tight supply of offshore rigs. The renewed agreement not only boosts ADES’ backlog but also shows growing confidence in the demand outlook for jackup rigs in the region.
From Egypt Back to Saudi Waters
Currently, the rig is working under a medium-term contract in Egypt, where ADES has seven jackup rigs in operation:
Admarine III, IV, V, VI, VIII, 88, and 260. Once its assignment in Egypt wraps up, the rig is expected to head back to Saudi waters to begin its renewed contract.
Background: Six Rigs Suspended Last Year
In 2023, ADES and Aramco had mutually agreed to temporarily suspend operations on six out of 33 offshore rigs due to strategic adjustments. This new renewal marks the return of one of those rigs, signaling improved demand conditions in Saudi Arabia’s offshore sector.
CEO’s Statement
ADES CEO Mohamed Farouk shared his optimism:
“We are very pleased to have secured this renewal for our unit in Saudi Arabia, particularly as it was among the six previously suspended rigs in the Kingdom. The new award validates our positive outlook for the market. We will keep working on securing more renewals and expanding our backlog in key regions to maintain long-term revenue visibility.”
With 30 rigs currently active with Aramco, this new deal further cements ADES’ position as a key offshore drilling partner in the region.
