Saudi oil and gas drilling contractor ADES Holding has secured a contract from Suez Oil Company (SUCO) for a 21-month jack-up drilling work in the Gulf of Suez, offshore Egypt.
The contract, whose firm term is valued at $42.9 million (SAR 161 million), is expected to start in the coming weeks.
The new award come on the heels of company’s recently awarded campaigns in Qatar and Thailand that are slated to begin operations in the second half of 2024.
Together, the new awards in Thailand, Qatar and Egypt bring ADES Holding’s total redeployments of the recently suspended rigs in Saudi Arabia to three out of five jack-ups.
The drilling campaign for SUCO will utilize a standard jack-up unit from the company’s fleet, ADES Holding said.
The contract comes at an evident increase in daily rate compared to the company’s current average rates in Egypt, reflecting the current tight market environment for the jack-up industry and translates into favorable impact on the ADES Holding’s overall profitability.
“We are very excited to strengthen our relationship with SUCO with the deployment of one of our units in the Gulf of Suez. We are also very pleased with the Group’s ability to quickly market and secure new campaigns for three out of the five recently suspended rigs in KSA.
“The speed at which the redeployments will occur, just weeks post their temporary suspension, demonstrates our agility, strength of our global platform and our competitive position with a highly marketable and demanded fleet of jack-up rigs during very tight market conditions,” said Mohamed Farouk, CEO of ADES Holding.