Saudi Arabian oil and gas drilling contractor ADES International Holding has agreed to buy rival rig firm Shelf Drilling for $379.8 million.
The transaction is expected to close in the fourth quarter of 2025 subject to customary closing conditions, including approval by an extraordinary general meeting of Shelf Drilling's shareholders.
The combined group will operate as a strong global player in shallow-water drilling with a fleet of 83 offshore jack-ups, including 46 premium units across the world’s most attractive basins, with a total combined backlog of $9.45 billion as of 30 June 2025.
ADES expects to realize annual operational cost synergies of $40-50 million with gradual realization over the medium term, along with associated costs to achieve these synergies.
Saudi firm noted it will seek to optimize the enlarged group’s capital structure, efficiency and cost based on the strength of the combined balance sheets and cash flows. As such, ADES will settle Shelf Drilling’s existing debt obligations, the company said.
"We are truly delighted to announce our acquisition of Shelf Drilling. Over the past years we have unlocked new geographies and deepened our strategic reach. With this landmark transaction, we reinforce our position as a market leader in shallow-water offshore drilling, offering superior services to our client base alongside enhanced scale, asset quality, and operational reach.
“As part of the transaction, we will add 33 jack-ups and a dedicated, experienced workforce, supporting expansion into additional regions and further strengthening our global footprint,” said Mohamed Farouk, Chief Executive Officer of ADES.
“Today’s announcement delivers immediate and compelling value to our shareholders, reflecting both the strength of our business and the dedication of our employees. Over the past 13 years, Shelf Drilling has built a resilient company with an outstanding safety track record and a reputation for operational excellence.
“This transaction unites two highly complementary organizations, and we are confident that the combination will unlock the full strategic value of our global fleet and operations. We look forward to working closely with the ADES team to ensure a seamless and successful integration,” added Greg O’Brien, CEO of Shelf Drilling.