19-05-2025
ADES signs second offshore rig renewal contract with Saudi Aramco
ADES Holding Company has renewed a contract for an offshore rig with Saudi Aramco for the second consecutive month after temporarily suspending six rigs in the Kingdom last year.
The latest contract is for one of the offshore jackup rigs, which was suspended last year.
The 10-year contract has an estimated value of 1.61 billion Saudi riyals ($429 million), the company said in a statement to the Saudi stock exchange on Monday.
The renewal will significantly add revenue visibility and backlog sustainability.
The rig is currently operating on a contract in Thailand, and the exact rig commencement date is to be confirmed later, the statement said.
In April 2025, the company signed a SAR1.1 billion ($290 million) renewal contract for one standard offshore jackup rig for 10 years.
ADES had mutually agreed with its client in Saudi Arabia to temporarily suspend the operations on five of its 33 offshore jack-up rigs in the Kingdom for up to 12 months in April 2024.
The announcement had come after Saudi Aramco received a directive from the kingdom's energy ministry in January 2024 to maintain its Maximum Sustainable Capacity (MSC) at 12 million barrels per day (MMBD), and not to continue increasing MSC to 13 mmbd.
ADES' total backlog stands at SAR 26.9 billion as of March 31, 2025, according to its first quarter 2025 financials.
(Editing by Anoop Menon) (
