ADES Holding Co. secures major drilling contracts with Kuwait Oil Co.

Saudi-based exploration service provider ADES Holding Co. has recently inked a substantial deal worth SR2.42 billion ($645.3 million) with Kuwait Oil Co. The agreement encompasses six onshore drilling contracts, marking a significant expansion of ADES's operational footprint. The deal includes four existing operating rigs in Kuwait and the incorporation of two newly constructed units. These contracts are slated to kick off in the second and third quarters of 2025, with a confirmed five-year term and a potential one-year extension.

CEO of ADES Holding, Mohamed Farouk, emphasized the critical role these long-term contracts play in bolstering the company's backlog sustainability and business visibility. The awarded contracts will boost ADES's contracted fleet in Kuwait from four to 12 rigs by 2025, underscoring the company's exceptional safety and operational standards in the Kuwaiti onshore market.

All six contracts are specifically designated for deep drilling rigs in the 3,000-horsepower category, reflecting the substantial growth in this specialized market segment in Kuwait. The estimated backlog for these contracts totals SR2.42 billion, encompassing both the firm and optional periods. ADES has witnessed a remarkable three-fold surge in its contracted fleet with Kuwait Oil Co. over the past 24 months, solidifying its position as a key player in the Kuwaiti energy landscape.

Aside from its endeavors in Kuwait, ADES has broadened its regional presence by securing contracts in Qatar and Egypt. The company has sealed a deal with TotalEnergies to oversee an offshore drilling platform in Qatar valued at up to SR350 million, with operations slated to commence in the latter half of 2024. Additionally, ADES has clinched a 21-month contract from Suez Oil Co. in Egypt to operate an elevated platform in the Gulf of Suez, valued at SR161 million.

These recent ventures in Qatar and Egypt align with ADES's overarching regional strategy to revitalize its operations, following recent contracts in Thailand and Kuwait. The company's expanding influence in the oil and gas sector is evident through its strategic partnerships and foray into new markets.

The substantial deal between ADES Holding Co. and Kuwait Oil Co. marks a significant milestone in the company's growth trajectory, solidifying its position as a key player in the energy sector. With a strategic focus on expanding its operations regionally and maintaining exceptional operational standards, ADES is poised for continued success in the dynamic oil and gas industry.