Saudi oil and gas driller ADES Holding has secured a contract from major international oil company for one its jack-up drilling rigs, valued $93.3 million.
ADES Holding received the letter of award for a one-year firm jack-up drilling contract in Qatar with three optional six-month extensions.
Operations are expected to start in the second half of 2024 utilizing one of ADES’ jack-up drilling units.
The company did not disclose the name of the client, but the value of the contract is approximately SAR 350 million ($93.3 million).
The new award follows ADES’ earlier announcement of an imminent opportunity in the region and solidifies ADES’ position in the important Qatari market, with a three-rig operation after the planned relocation of its Emerald Driller to Indonesia, which is expected to happen in second half of 2024.
“We are very pleased with our ability to quickly market and secure new campaigns for the five recently suspended rigs in Kingdom of Saudi Arabia. New capacities made available have allowed us to quickly find a technically suitable unit to maintain our three-rig presence in Qatar following the planned departure of our jack-up rig, Emerald Driller, from Qatar to Indonesia in the second half of 2024.
“The Emerald Driller had delivered an exceptional safety and operational performance during its operation in the Al-Khaleej field over the past few years, and we look forward to continuing our journey in Qatar with our client and to providing exceptional safety and operational performance that has become synonymous with the ADES name,” said Mohamed Farouk, CEO of ADES Holding.
To remind, five of ADES Holding’s 33 offshore jack-ups operating in the Kingdom of Saudi Arabia received notice of temporary suspension from Saudi Aramco earlier in April, for a period of 12 months.
The said at the time that the original term of the suspended contracts will automatically be extended for a period equal to the suspension for each rig, preserving the remaining backlog for the respective contracts.