Saudi Exploration Service Provider ADES Holding Co. Secures SR2.42 Billion Deal for Six Onshore Drilling Contracts with Kuwait Oil Co.
In a groundbreaking move, ADES Holding Co. has inked a lucrative SR2.42 billion deal with Kuwait Oil Co. for six onshore drilling contracts, signaling a major expansion of its operations.
Expanding Fleet and Strengthening Presence in Kuwait
The deal includes agreements for four existing operating rigs in Kuwait and two newly constructed units, set to kick off in the second and third quarters of 2025. A firm five-year duration with an optional one-year extension adds to the long-term sustainability of ADES Holding’s backlog.
Mohamed Farouk, CEO of ADES Holding, expressed his excitement, noting that the contracts will triple the company’s contracted fleet in Kuwait from four to 12 rigs by 2025. This expansion solidifies ADES’ position in the Kuwaiti onshore market, known for its high barriers to entry and deep drilling deployments.
Strategic Growth in Niche Market Segment
All six contracts are designated for deep drilling rigs in the 3,000-horsepower category, catering to the growing demand in Kuwait. The estimated backlog for these contracts stands at a staggering SR2.42 billion, encompassing both the firm and optional periods.
Regional Expansion and New Engagements
In addition to the Kuwait contracts, ADES has been making significant strides in the region. The company recently secured contracts in Qatar and Egypt, further solidifying its presence in the oil and gas sector.
The deal with TotalEnergies in Qatar for an offshore drilling platform valued at up to SR350 million is set to commence in the second half of 2024. Meanwhile, ADES also landed a 21-month contract with Suez Oil Co. in Egypt for an elevated platform, valued at SR161 million.
These new engagements in Qatar and Egypt are part of ADES’s broader regional strategy to reactivate its operations, following recent contracts in Thailand and Kuwait. The company’s growth trajectory is on an upward trend, with strategic partnerships and contracts solidifying its position in the market.