RIYADH: The Saudi-based drilling corporation ADES is gearing up to manage a colossal SR350 million ($93.3 million) jack-up rig in Qatar, following a freshly minted agreement with energy titan TotalEnergies.
According to a disclosure to the Saudi stock exchange Tadawul, ADES has received a letter of award that not only secures the deal but also contains an extendable contract duration that could reach a total of 18 months.
The project is slated to kick off in the latter half of 2024, with ADES deploying its specialized fleet of jack-up offshore drilling units for the task.
In addition, the contract is a strategic move for ADES, allowing the firm to uphold its competitive stance in the Qatari market by operating a trio of drilling rigs. This strategic decision follows the planned migration of its Emerald Driller rig to Indonesian waters, which is also scheduled for the second half of 2024.
Mohamed Farouk, CEO of ADES Holding, expressed his satisfaction with the company’s agility in swiftly marketing and obtaining new ventures for the five rigs previously paused in Saudi Arabia. “We are very pleased with our ability to quickly market and secure new campaigns for the five recently suspended rigs in Saudi Arabia,” Farouk remarked.
He emphasized the rapid deployment of available capacities, which has enabled ADES to continue its operations with three rigs in Qatar despite the impending relocation of the Emerald Driller to Indonesia.
Farouk also highlighted the Emerald Driller’s stellar safety and operational record at the Al-Khaleej field in the past years. He is optimistic about ADES’s future in Qatar, maintaining the high standards associated with the company’s reputation.
Last November, ADES Holding Co. celebrated securing three new contracts totaling $293 million, which marked the company’s entry into the Indonesian market and reinforced its presence in Algeria.
The company’s venture into Southeast Asia features a lucrative SR803 million contract with Pertamina Drilling Services Indonesia, as per a stock market announcement. ADES is set to manage Pertamina’s Emerald Driller, which is positioned in the Java Sea, on a contract that includes a three-year firm period and a two-year extension option, commencing in the second half of 2024.
With these developments, ADES now boasts operational sites across eight nations. Farouk expressed his enthusiasm for entering the Indonesian sector via a strategic alliance with Pertamina Drilling Services Indonesia, a prominent drilling contractor in Southeast Asia, aiming to provide top-tier drilling services in the region.
“With this award, we extend our geographical footprint to a promising and demanding market, namely Indonesia and Southeast Asia,” Farouk stated, acknowledging the potential and challenges of the new markets.