ADES wins SAR 81.8M jackup drilling contract in Nigeria

ADES Holding Co. announced that its offshore jackup rig “Admarine 504” was awarded, on Jan. 8, a drilling contract in Nigeria by Brittania-U, an integrated energy company that operates across the oil and gas value chain in the West African country, according to a statement to Tadawul.

The contract includes drilling and completing six wells within an estimated duration of 365 days. Operations are expected to commence in the second quarter of 2025.

Operations of the rig will be jointly handled by ADES and Valiant Offshore Contractors Limited (in-country partner) under a charter structure. ADES will provide the rig along with its senior crew and relevant management systems to Valiant against a charter fee. In return, Valiant shall fulfill its drilling obligations under its contract with Brittania-U.

The value of the charter contract between ADES and Valiant is estimated at SAR 81.8 million ($21.8 million), which represents a percentage of the drilling contract between Brittania-U and Valiant.

The charter revenue generated by ADES will mostly be reflected in its earnings before interest, taxes, depreciation, and amortization (EBITDA) and profitability.