ADES to launch $21.8m oil drilling project in Nigeria by Q1 2025
BY MOTOLANI OSENI
A firm that carries out rig operations in Saudi Arabia, ADES is making its first foray into West Africa with a contract value of $21.8 million to drill and complete six wells within an estimated duration of 365 days.
The contract represents a percentage from the drilling contract between Brittania-U and Valiant.
“Following our successful expansion over the past couple of years into India and Southeast Asia, we are now making our first foray into West Africa with this new award in Nigeria, a country with high oil and gas potential and strong demand for drilling rigs in the coming years, particularly in the offshore jack-up segment.
“This award is an important milestone in our global expansion journey, with West Africa and Southeast Asia together representing key growth geographies for ADES as we diversify our geographical footprint and capitalize on emerging opportunities in these undersupplied markets.
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“Meanwhile in our home market of Saudi Arabia, we continue to demonstrate agility with a client-centric approach – aligning with our client’s strategic needs and objectives – while leveraging newly afforded capacities to pursue attractive opportunities in existing and new markets. In that regard, the group has successfully secured new awards for four of the five previously suspended rigs in record time, and we are confident in the Group’s ability to redeploy the remaining rig during the year,” said CEO of ADES Holding, Mohamed Farouk.
ADES and Admarine 504’s current client in Saudi Arabia have mutually agreed to suspend the rig’s operation in the country, while retaining the remaining backlog value with the group’s client by way of extending the original term of the temporarily suspended contract.
Admarine 504 will be mobilized from the Middle East to Nigeria in the first quarter of 2025, as the agreed suspension mechanism offers enough flexibility for the suspended rig to complete new deployments before resuming work in Saudi Arabia post suspension.
Operations of the rig to be jointly handled by ADES and Valiant Offshore Contractors (in-country partner) under a charter structure, where 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.
