ADES wins new contract worth SAR 161M in Egypt

ADES Holding Co. received a direct award contract (DAC) from Suez Oil Co. (SUCO) in Egypt, on May 2, for jack-up drilling rig in the Gulf of Suez, at a total value of SAR 161 million.

In a statement to Tadawul, the company said that the 21-month contract is for a standard jack-up rig from its existing fleet.

Work is to commence in the coming weeks, the statement added.

The new contract comes at an evident increase in daily rate compared to the group’s current average rates in Egypt, reflecting the current tight market environment for the jack-up industry and translates into a favorable impact on the group’s overall profitability.

The new award comes on the heels of the group’s recently awarded campaigns in Qatar and Thailand that are slated to commence operations in the second half of 2024. Together, the new awards in Thailand, Qatar and Egypt bring the group’s total redeployments of the recently suspended rigs in Saudi Arabia to three out of five jack-ups, the company noted.