ADES Boosts Backlog with Several Drilling Rig Deals off Nigeria

Offshore drilling contractor ADES Holding has secured multi-year contracts for three premium jack-up rigs offshore Nigeria and a separate one-year extension for another rig, strengthening its presence in West Africa.

The drilling services provider signed a contract with West African Exploration & Production (WAEP), part of the Dangote Group, covering three jack-up units for a field development campaign offshore Nigeria.

The contracts have a firm duration of three years for each rig, with options to extend for a further two years, and operations are expected to begin in the second half of 2026.

The total contract value, including mobilization and demobilization fees, is approximately $729 million (2.73 billion Saudi riyals), including the share of ADES’ in-country partner Valiant Offshore, which will provide manpower, logistics and local support services.

The company said it would deploy a mix of rigs currently operating in the region and others relocated from different markets to meet the contract requirements.

Separately, ADES secured a one-year extension for its premium jack-up rig Shelf Drilling Scepter in Nigeria, with a one-year unpriced option, in direct continuation of the rig’s existing contract expiring in July 2026.

The extension adds about $47.5 million (178 million Saudi riyals) to the company’s backlog.

“We are very pleased to start this relationship with WAEP, a fast-growing energy player and part of the influential Dangote Group, whose upstream activities play an increasingly critical role in Nigeria’s integrated energy landscape.

“This multi-rig commitment is a testament to the strength of our global fleet, our ability to mobilize efficiently across regions, and our proven capability to execute multi-year upstream development programs in emerging offshore markets,” said Mohamed Farouk, Chief Executive of ADES Holding.

He added that Nigeria continues to evolve as one of the highest-demand markets for jack-ups, with increasing tendering activity from clients seeking long-term partnerships.

“This extension marks an important step following the acquisition of Shelf Drilling, reinforcing our strategic rationale of building a scaled, globally diversified platform with access to leading international markets and clients,” Farouk said regarding the contract extension.