Saudi Aramco Considers Suspending Offshore Operations for a Year
In a strategic move, energy giant Saudi Aramco is in talks with drilling companies to potentially halt its offshore processes for a year, signaling a shift in operational strategies.
Arabian Drilling in Discussions with Aramco
Leading national contractor Arabian Drilling has confirmed ongoing discussions with Aramco regarding the pausing of contracts for three of its offshore rigs, with the possibility of the suspensions lasting up to 12 months. The company has yet to finalize the affected rigs and timing of the suspensions, promising to provide a market update once the discussions are complete.
ADES Holding Co. Temporarily Halts Operations in Saudi Arabia
Global oil and gas drilling services leader ADES Holding Co. has reached a mutual agreement with its client in Saudi Arabia to temporarily suspend operations on five of its 33 offshore jack-ups for a similar period. CEO Mohamed Farouk emphasized the importance of adapting to the changing Saudi market and maintaining client satisfaction while preserving the backlog of the affected contracts.
ADES also announced plans to utilize one of the suspended rigs for a new project in Thailand and prepare another for an upcoming opportunity in the region. The suspensions will take effect seven days from the signing date of the break notice or upon completion of ongoing work, ensuring a smooth transition for the affected units.
Preserving Value Amid Financial Success
Despite the operational adjustments, Saudi Aramco reported a net income of $121.3 billion in its 2023 financial results, showcasing its commitment to creating value for shareholders. The company’s strong performance reflects its resilience and adaptability in the ever-evolving energy industry.