Saudi drilling firm ADES seals 3 contracts worth $293m in Indonesia and Algeria
RIYADH: Saudi oil and gas drilling provider ADES Holding Co. has secured three new contracts totaling $293 million, marking its entry into Indonesia and strengthening its presence in Algeria.
The company announced its foray into Southeast Asia with a long-term contract valued at SR803 million ($214 million) with Pertamina Drilling Services Indonesia, according to a bourse filing.
ADES will operate Pertamina’s existing jackup drilling rig, Emerald Driller, located in the Java Sea. This contract, comprising a three-year firm period and a two-year option, is slated to commence in the second half of 2024.
With this expansion, ADES now operates in eight countries.
Mohamed Farouk, CEO of ADES, said: “We are pleased with the opportunity to enter the Indonesian market, through our strategic partnership with Pertamina Drilling Servies Indonesia who is a leading drilling contractor in Southeast Asia to provide our best-in-class drilling service to Pertamina in Region 2.”
With this award, he said ADES extends its geographical footprint to a very promising and demanding market, namely Indonesia and Southeast Asia.
Farouk added that this step will pave the way and unlock real potential for sustainable growth in this part of the world.
Furthermore, ADES strengthened its position in the Algerian market by securing two long-term contracts worth SR296 million ($79 million) from Sonatrach for its existing onshore rigs.
These agreements include a five-year contract for two onshore rigs, ADES 810 and ADES 815, currently operational in Egypt and scheduled to move to Algeria in the second half of the following year.
“Such geographic expansion, along with the recent awards in Algeria, underpins the Group‘s continuous focus on backlog replenishment through long-term contracts, offering robust cashflow visibility, and is a testament to the Group’s strategy to tap into diversified and value-accretive markets, seizing growth prospects while maintaining our operational excellence and commitment to safety,” the ADES CEO said.
Founded in 2016, ADES Holding Co. has quickly grown to be one of the leading oil and gas drilling companies in the Kingdom.
Headquartered in Al-Khobar, the company has over 7,500 employees and a fleet of 87 rigs.