ADES Holding Company, Saudi Arabia announces 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.
Key Highlights of the Contract Extension
- The extension is for ADES’ jackup drilling rig Admarine 657, which is currently operating in the Kingdom of Saudi Arabia.
- The contract term is for 10 years and is expected to commence in the third quarter of 2024 immediately upon expiry of the current contract term.
- Total backlog from the extension is estimated at SAR 1,317 million (USD 351 million), reflecting the longer than average term of the awarded extension.
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.
